Question
https://www.youtube.com/watch?v=494a2-rB3OM&t=3s questions to the video: - What are the government's goals in setting this new tax? - What does Kate mean by 'behavioural responses' ?
https://www.youtube.com/watch?v=494a2-rB3OM&t=3s questions to the video:
- What are the government's goals in setting this new tax?
- What does Kate mean by 'behavioural responses'? Are these related in some sense to what we are doing this week?
- How do elasticities figure in what Kate says? For example, how does the government estimate how much revenue a particular tax will raise?
- How is the notion of substitutability between goods related to the issues that might come up when setting a sugar tax?
- Discuss the different normative issues that were discussed in the video. In particular, think of what the government's goals in setting the tax are. What would happen to the consumer surplus of consumers because of the tax? Why in the case of the sugar tax could it be considered 'OK' that the government uses taxes even though the notion of consumer surplus we have studied might not justify imposing a tax?
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