The researchers conducted the experiment at a hospital cafeteria, and they also tested whether an educational campaign explaining the health effects of soda drinking affected consumption. It did not — although when higher prices were combined with an educational campaign, consumption fell more than it did with higher prices alone.H/T Lisa, who says: "Thank goodness the scientific method could be used to conclude a basic economic fact that most of us learned in fifth grade."
In many ways, this study is not surprising. People respond to significant price changes. That’s true with cigarettes, alcohol and, evidently, soda. But this study is still important, partly because previous research has found that small price increases, via taxes, did not significantly affect soda consumption.
Benedict Arnold Obama
8 hours ago