PROFESSIONAL ACADEMIC STUDY RESOURCES WEBSITE +1 813 434 1028  proexpertwritings@hotmail.com

Evidence: A sweet problem

Description

Read the article: https://www.unotv.com/noticias/nacional/detalle/cuesta-a-mexico-85-mdp-anuales-atender-epidemia-de-obesidad-176453/
(Enlaces a un sitio externo.)
and answer the questions:

Which are the economic implications of this obesity problem in Mexico?
What strategies do you consider that governments can use to mitigate this problem?

Section 2. Impact of economic variables

Obesity is a serious problem within society. Currently, the government seeks to mitigate this situation by applying a tax on the consumption of these foods. Analyzing the 2-liter soft drink market, answer the following:

Price

Quantity demanded

Quantity supplied

$14

90

40

$15

85

45

$16

80

50

$17

75

55

$18

70

60

$19

65

65

$20

60

70

$21

55

75

$22

50

80

$23

45

85

$24

40

90

Calculate and graph the market equilibrium.
Assuming that government places a tax of 2 MXN on the producer, calculate and graph the new market equilibrium on the previous graphic.
What are the factors that determine the final impact of this measure on the market?

Section 3. Analysis for the organization

Read the following article written in early 2014, this was the year the IEPS was applied to sugary drinks: https://expansion.mx/nacional/2014/01/28/el-precio-de-los-refrescos-sube-como-la-espuma
(Enlaces a un sitio externo.)
. From this article, answer the following questions:

According to this quote from the article: “En Coca-Cola FEMSA hemos decidido que estos cambios de precios se hagan de manera gradual en algunos de nuestros empaques y productos durante el primer trimestre del año, de manera que ayude a minimizar este impacto en los bolsillos de nuestros consumidores” , what kind of good does FEMSA consider are the sugary drink?, this good is elastic or inelastic? Justify your answer.
Do a SWOT analysis for Coca-Cola FEMSA and identify its sources of competitive advantage, as well as its opportunities and threats. Do you think that the tax affects significantly the future growth of the company? Justify your answer
According to the article, why, despite the fact that the IEPS was 1 MXN per liter, the final price of the soft drinks varied from cities and establishments? Justify your answer.
How do you evaluate the government intervention in this market?
Length: 3 – 5 pages without references;
References: APA;
Font size: 12 points; and
Line spacing: 1.5 lines.

Share your love

Newsletter Updates

Enter your email address below and subscribe to our newsletter

Leave a Reply

Your email address will not be published. Required fields are marked *