Introduction:

What is the Demand, supply and elasticity of soft drinks?

The authors find that soft drink consumption is price elastic, income elastic, and sensitive to
weather. They estimate that 30% of the amount of surrendered excise tax revenue is recap-
tured by the value-added tax and income tax. The remaining 70% loss is further reduced by a
small reduction in welfare costs, elimination of administration costs, and reduced compliance
costs.
Justifying the reason for selecting the topic:
All the topics relating to Managerial Economics we have learned hold learning outcomes re-
lating to the Economic Recession. An extreme outcome of this is Economic Depression.
This topic will allow us to showcase all forms of Concepts of Economics like Elasticity, Sup-
ply and Demand, and Production and Cost Concepts, taken to extremes.

Works Cited
There are no sources in the current document.
Bahl, R., Bird, R., & Walker, M. B. (2003). The uneasy case against discriminatory excise taxation:
soft drink taxes in Ireland. Public Finance Review, 31(5), 510-533.

Objectives: