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Americans Consume 126 Grams of Sugar Per Day

question 14

Essay

Americans consume 126 grams of sugar per day. Suppose that a sugar tax raises the retail price of sugar from US$2.79 to US$3.39 per pound, and reduces consumption to 120 grams per day. Calculate the own-price elasticity of demand.


Definitions:

EBIT

This earnings measure, known as Earnings Before Interest and Taxes, tallies a company's profit while omitting costs associated with interest and taxes.

Marginal Provincial Tax Rate

This is the tax rate that applies to the next dollar of taxable income in a specific province.

Provincial Tax Rates

The percentage of tax levied by provincial governments on individuals or businesses, varying based on the province within a country.

Average Provincial Tax Rate

The average provincial tax rate is a measure of the mean taxation rate imposed by a province on individuals or businesses, considering all applicable tax brackets.

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