SOFTDRINK MARKET (CASE#1). 2 3 4 56 789012 13 14 15 16 17 18 19 20 QUANTITY OF SOFT DRINKS PRICE OF SOFTDRINKS ($/1tite-) SOFTDRINK MARKET (CASE # 2) 一す2,5 50 5. 32,00 *1,00 3,50+ 10 1l 12 13 14 15 16 17 1819 20 QUANTITY OF SOFTDRINKS (in millions , liters) PRICE OF SOFTDRINKS (3/Liter)
SOFTDRINK MARKET (CASE#1). 2 3 4 56 789012 13 14 15 16 17 18 19 20 QUANTITY OF SOFT DRINKS PRICE OF SOFTDRINKS ($/1tite-) SOFTDRINK MARKET (CASE # 2) 一す2,5 50 5. 32,00 *1,00 3,50+ 10 1l 12 13 14 15 16 17 1819 20 QUANTITY OF SOFTDRINKS (in millions , liters) PRICE OF SOFTDRINKS (3/Liter)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question: Assume that 10% of health care costs are related to obesity and that obesity rates decline by 0.1% for every 1 million liter reduction in soft drink consumption. If total health care costs/ spending in the U.S. is $2 trillion, then what are the health care cost savings from the $1 per liter excise tax on soft drinks for (Graph, Case #1) and (Graph, Case #2)? Explain in words and show your work). Please see the attached graphs below:
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