In 2016, Philadelphia imposed a tax of 1.5 cents per ounce on sweetened beverages, and PepsiCo indicated that its sales in Philadelphia fell by 40 percent after the tax took effect.If the price of PepsiCo's sweetened beverages in Philadelphia increased by 32 percent following the implementation of the tax, then based on these figures total revenue

Question

Quizplus · Accepted Answer

The decrease in sales of PepsiCo's sweetened beverages by 40 percent implies a decrease in revenue. Furthermore, the increase in price by 32 percent would likely further decrease the demand for the products, leading to a larger decrease in revenue. Therefore, total revenue would have decreased.

In 2016, Philadelphia Imposed a Tax of 1