Excess sugar leads to a rise in a consumer’s weight. A government has introduced a ‘sugar tax’ on the consumption of soft drinks with a high sugar content. How might this policy help to reduce the number of overweight people?
- AConsumers switch to cheaper brands of soft drink with a high sugar content.
- BConsumers switch to other high-sugar substitute goods, such as alcohol or sweets.
- CThe price elasticity of demand for soft drinks is inelastic.
- DThe tax revenue is spent on education about the dangers of soft drink consumption.