$[5$ marks$]$ According to a survey, the majority of Canadians support a tax on sugarsweetened beverages and use the proceeds for health promotion.

a$)(2$ marks$)$ A sugary drink tax would increase the price of sugar$-$sweetened beverages. Is the tax an effective way to reduce the consumption of sugar$-$sweetened beverages? How does your answer depend on the price elasticity of demand?

b$)(1$ mark$)$ Now suppose the tax permanently increases the price of sugar$-$sweetened beverages, will the tax have a larger effect on the consumption of sugar$-$sweetened beverages one year from now or five years from now? Briefly explain why.

c$)(2$ marks$)$ Suppose the government officials would like both to reduce the consumption of sugar$-$sweetened beverages and to increase government revenue from the tax, how elastic or inelastic do they want the demand for sugar$-$sweetened beverages to be$?$