) ▁dropped ▁ 4 6 % ▁in ▁the ▁city ▁itself , ▁but ▁when ▁account ing ▁for ▁people ▁travel ing ▁to ▁neighbor ing ▁cities ▁without ▁a ▁tax , ▁overall ▁purch ases ▁of ▁the ▁affected ▁be ver ages ▁dropped ▁ 2 0 %. ▁ ▁The ▁way ▁that ▁the ▁tax ▁bur den ▁is ▁divided ▁upon ▁the ▁consumer ▁and ▁s eller ▁depends ▁on ▁the ▁price ▁el astic ity ▁for ▁sug ary ▁drink s . ▁The ▁tax ▁bur den ▁will ▁fall ▁more ▁on ▁sell ers ▁when ▁the ▁price ▁el astic ity ▁of ▁demand ▁is ▁greater ▁than ▁the ▁price ▁el astic ity ▁of ▁supply ▁while ▁on ▁buy ers ▁when ▁the ▁price ▁el astic ity ▁of ▁supply ▁is ▁greater ▁than ▁the ▁price ▁el astic ity ▁of ▁demand . ▁The ▁price ▁el astic ity ▁for ▁sug ary ▁drink s ▁is ▁different ▁from ▁country ▁to ▁country . ▁For ▁instance , ▁the ▁price ▁el astic ity ▁of ▁demand ▁for ▁sug ary ▁drink s ▁was ▁found ▁to ▁be ▁- 1 . 3 7 ▁in ▁Chile ▁while ▁- 1 . 1 6 ▁in ▁Mexico . ▁Hence ▁if ▁both ▁of ▁those ▁results ▁were ▁real istic ▁and ▁the ▁price ▁el astic ity ▁of ▁supply ▁would ▁be ▁the ▁same ▁for ▁both , ▁the ▁tax ▁bur den ▁on ▁consum ers ▁would ▁be ▁higher ▁in ▁Mexico ▁than ▁in ▁Chile . ▁ ▁A ▁ 2 0 1 9 ▁National ▁Bureau ▁of ▁Econom ic ▁Research ▁paper ▁concluded ▁that ▁sugar ▁drink ▁tax es ▁were ▁" w elf are ▁en han cing , ▁and ▁indeed ▁that ▁the ▁optimal ▁nation wide ▁S SB ▁tax ▁rate