Business, 20.06.2020 20:57, aseel667789

You are a USDA economist, and the Senate Finance Committee has come to you for advice. The government is considering bolstering its finances by imposing a tax on either salt or blue cheese. You know that the markets for salt and blue cheese are roughly the same size, though the demand for salt is highly inelastic, while the demand for blue cheese is highly elastic. Which option do you recommend as the least costly choice? A tax on would be less costly, because the deadweight loss that occurs would be smaller due to the demand being relatively in this market.

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You are a USDA economist, and the Senate Finance Committee has come to you for advice. The governmen...