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Chris M.
Chris M., M.S.W. Social Work
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The government decides to tax cookbooks because they feel that

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The government decides to tax cookbooks because they feel that they encourage overeating and can lead to health issues, such as obesity and heart disease. Answer the following:
• What type of tax is this? Explain.
• What happens to the supply of cookbooks?
• What happens to the equilibrium price?
• Who pays the tax at the end?
• Is this a good way to finance programs to improve health?
• What other types of tax can the government use to increase revenues?
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