MAE101 Economic Principles Assignment: Sugar Tax Impact Analysis, 2020
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Homework Assignment
AI Summary
This assignment analyzes the economic principles of sugar taxes, focusing on case studies from Mexico and Australia within the context of MAE101 Economic Principles. It begins by examining the price elasticity of demand for sugar-sweetened beverages (SSBs), both overall and for low-income households, using data from Mexico. The analysis includes calculations of price elasticity, discussions of factors influencing prices, and an examination of cross-price elasticity between SSBs and bottled water. The assignment further explores the impact of a sugar tax on supply and demand, illustrating the effects with diagrams and discussing tax revenue implications. It then considers the impact of awareness campaigns and compares their effects to those of a sugar tax. The second part of the assignment applies these concepts to the potential implementation of a sugar tax in Australia, discussing the price elasticity of demand and the potential health benefits. Finally, the assignment addresses the unintended consequences of sugar taxes, such as the potential for increased prices due to transportation costs and changes in consumer behavior. The assignment utilizes economic models, data analysis, and policy considerations to provide a comprehensive understanding of sugar tax economics.
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