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

1547 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Is there a way to find out a nouns gender?


What impact would a cut in the base rate by the Bank of England have on Aggregate Demand?


How have the Big Six energy companies benefited from vertical and horizontal integration?


How can you tell the difference between a positive and a normative statement?


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