The UK government are planning on imposing a tax on sugary drinks. Discuss how a tax could be used to decrease consumption of sugary drinks and outline some potential issues.

Gov should try place monetary value on welfare loss - this may be difficult tax would increase cost of production for firms - they supply less (shown on supply and demand diagram)tax would deter customers from buying as much sugary drinks as they are now more expensive (demand decreasing on diagram) issues- inelastic demand admin costs hard to place monetary value on welfare loss

AA
Answered by Ahmad A. Economics tutor

1407 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What drives inflation and why is it essential to modern economies?


Why is the marginal cost curve shaped the way it is?


What's the difference between an elastic good and an inelastic good?


Evaluate the view that all firms are aiming to maximise profits


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning