[Related to the Chapter Opener on page 72] In recent years, a number of cities have passed taxes on carbonated sodas to help reduce obesity and raise tax revenues. An article in the New York Times...

[Related to the Chapter Opener on page 72] In recent

years, a number of cities have passed taxes on carbonated

sodas to help reduce obesity and raise tax revenues. An

article in the New York Times observed, “With that public

momentum, a soda tax may be coming to a city near you.”

If this forecast is correct, what will be the effect on the

demand for premium bottled water? Briefly explain.