Should There Be a Soda: https://www.bakerinstitute.org/research/should-there-be-soda-tax

After reading this article, typewritten response to the following scenario:

Assume as an economist, you have been asked by a legislative committee in Frankfort to address whether you think a 5% state-wide tax on fast food (which will generate state tax revenues) OR a 5% price discount (which will generate state expenditures) on fruits and vegetables purchased at retail would be effective in producing positive health outcomes. Be sure to respond llke an economist, discussing what tools/methods you might use to conduct your analysis, impacts on the state budget, and some of the potential unattended consequences and complicating factors.

As an aside, the latest inflation data came out last Thursday prior to class. Data revealed that inflation is not subsiding. Most of the discussion by the analysts focused on food prices. But on a positive note for senior citizens, as we discussed in class, the CPI is used to adjust social security payments which due to inflation will up 8.7%. Here is a newspaper clip from the LA Times.

Americans Face a Pricier Thanksgiving