1.7. The U.S. Department of Agriculture (USDA)

has been concerned that Americans aren't eating enough fruits and vegetables, and they've considered coupons and other subsidies to encourage people-especially lower-income people-to eat these healthier foods. Of course, if people's demand for fruits and vegetables is perfectly inelastic, then there's no point in giving out coupons (Thought question: Why?).

If instead the demand is only somewhat elastic, there may be better ways to spend taxpayer dollars.