Day: September 20, 2021

Too much sugar can apparently cause an increase in a consumer’s weight.

The UK government has introduced a ‘sugar tax’ on the consumption of soft fizzy drinks that have a high sugar content in order to help solve the perceived problem.

How might this policy help to reduce the number of overweight people in the UK?

Select ONE answer:

1. Consumers switch to cheaper brands of soft drink with a high sugar content.
2. Consumers switch to other high-sugar substitute goods, such as alcohol or sweets.
3. The price elasticity of demand for soft drinks is inelastic.
4. The tax revenue raised is spent on education about the dangers of soft drink consumption.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.