Question: A state facing a budget shortfall decides to tax soft drinks. You are a budget analyst for the state. Do you expect to collect more

A state facing a budget shortfall decides to tax soft drinks. You are a budget analyst for the state. Do you expect to collect more revenue in the first year of the tax or in the second year? Why?

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A state facing a budget shortfall decides to tax soft drinks. You are a budget analyst for the state. Do you expect to collect more revenue in the first year of the tax or in the second year? Why?

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