Question
Obesity is a major issue for Mayor Gavin Newsom. One advisor points out that don uts are extremely popular in San Diego, and sugg ests
Obesity is a major issue for Mayor Gavin Newsom. One advisor points out that don uts are extremely popular in San Diego, and sugg ests that the city could start taxing them.
A lob byist from Donut Shop meets with the advisory team claiming that this tax is likely to be regressivehe shows data that Donut Shop customers are on avera ge lower He sug gests instead only taxing two high-end donut shops frequented by higher-inco me individuals. How will this impact the effect of the tax? What do you expect to hap pen to prices, deadweight loss, and calo ries consumed? [words are fine]
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