1. In 2017, the city of Seattle instituted an excise tax on sugary drinks.Explain using a graph what the impact of this tax is likely to be.Be sure to explain what is going on in your graph and to include an analysis of elasticity in your answer. 130 words

2.Policy should increase the welfare of the people to whom it will be applied.If every person were forced to purchase healthcare would you consider this policy to be Pareto-efficient?Why or why not? 130 words

3.Explain how the price and quantity of regulation is expected to change as legislators are lobbied by taxi drivers facing competition from Uber.Specifically state which curve shifts and why it shifts.Provide a fully labelled graph to support your position, and explain what is going on in the graph. 130 words

4.Is price discrimination welfare increasing?Why or why not? 130 words

5.Assume taxes in a small town are levied based on the median income.If you earn more than the median you pay a 50% tax rate.If you earn less than or equal to the median you pay 20%.A proposal has been made to change the basis of the tax to the mean rather than the median, so that if you earn more than the mean you pay 50% and if you earn less than or equal to the mean you pay 20%.Currently there are seven people in the town.Their names and incomes are listed below: 130 words

What is the mean and median of these incomes?What would the tax collection be under each plan? If put to a vote, will the proposal to change the basis of the tax pass?Why or why not?Is this a good thing for the town in terms of efficiency?Why or why not?