Question: After you have studied Reading Between the Lines (pp. 194195), answer the following questions. a. If big cups of sugary drinks are banned at restaurants,

After you have studied Reading Between the Lines (pp. 194–195), answer the following questions.
a. If big cups of sugary drinks are banned at restaurants, theaters, and stadiums:
(i) How will the price of an ounce of sugary drink change?
(ii) How will consumers respond to the change in price?
b. If a tax is imposed on sugary drinks, how does
(i) The marginal utility of a sugary drink change?
(ii) The consumer surplus in the market for sugary drinks change?

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a i The data show that the larger the container the lower the price per ounce If big cups are banned ... View full answer

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