2. Sweet taxes make the world sweeter! According to a study conducted by the World Health Organization, noncommunicable diseases, such as heart disease, cancer, diabetes, chronic lung disease, and stroke, are the main leading causes of deaths—almost 90% worldwide. These diseases also have social and economic costs. Cardiovascular diseases, for example, cost the economy of the European Union about 210 billion Euro in 2015. One method some European countries adopted to try to reduce the death rate from those leading causes was to impose high taxes on sugar-sweetened beverages. Assume that your next president loves the idea of sugar taxes and proposes a 30% tax on all sugary beverages in the country. And assume you are a marketing manager at a company that makes sugary soft drinks. The owner of the company heard the news and came to you for advice and asked you the following questions: So, buddy, should I be worried about our business if this sugar tax policy is implemented? Why? How do…

3. The world is more beautiful with just a bit of makeup. Your friend Nora is an artist, and she loves makeup, so she decided to become a beautician. She recently began recording videos of herself applying makeup to others and posting those videos on social media. She typically charges about $250 for full facial makeup for special occasions like weddings, engagement parties, graduation parties, and so forth. Her work is great, and her videos made her famous on social media outlets, and now she has over 500,000 followers. The demand for her services has risen. People have to book her months in advance if they want her to do their makeup. She was excited about her success, and she wants to take advantage of it, so she wants to learn more about her opportunities and has texted you the following questions: Now people want my services so badly, do you think I should raise my prices from $250 to $500 to make more revenue (sales)? Or should I reduce my price to $150? Please educate me on…

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