To combat the obesity epidemic, the government is considering a tax of $0.50 per can on non-diet soda. Cans of soda currently cost $1.

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4. To combat the obesity epidemic, the government is considering a tax of $0.50 per can
on non-diet soda. Cans of soda currently cost $1.00.
(a) If the government’s goal were to reduce quantity by as much as possible, would it
prefer that supply be more elastic or less elastic? What about demand?