Economy, asked by evanasco, 2 months ago

Aerated drinks like coke cause obesity, the government can help in restricting its consumption by:

(a) imposing heavy tax on it

(b) prohibiting its sale in the school canteen

(c) increasing the price

(d) counselling the students through the school

Answers

Answered by nandha2401
0

Explanation:

Arguments in favour of a sugar tax:

External costs of sugary drinks – externalities are a cause of market failure

Information failures – people often under-estimate the long term costs to their own healthcare of eating high sugar foods and drinks

Sugar tax raises revenue – this might be ring-fenced for other projects such as increased funding for school and community sports facilities

Tax encourages producers to re-formulate drinks - i.e. make them healthier by reducing the sugar content. There is substantial evidence that this has happened with high sugar drinks.

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