What a big tax on soft drink can do A big tax on sugary drinks in Mexico has cut consumption. Sellers passed on the entire tax in higher prices. The largest consumers of sugary drinks are the poor who suffer from diabetes and obesity. Source: The New York Times, October 19, 2015 What can we say about the incidence of Mexico's tax on sugary drinks and what can we infer about the elasticities of supply and demand for these drinks? Would this tax by a progressive tax or a regressive tax? On the basis of what principle would this tax be fair?

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: