Watch the video:
Write at least two paragraphs answering the following questions:
1. Why might revenues generated from the tax fall short of expectations?
2. Do you think that Philadelphia should or shouldn’t have adopted the tax to fund pre-K education? Support your brief argument with economic concepts covered in the course.
3. Suppose a government wants to use tax policy to persuade people to not consume certain products or services. Suppose, the government has limited resources and can only enforce (or collect) a limited number of taxes. Should that government target goods or services that have an elastic or inelastic price elasticity of demand (ED)? Why?
4. Suppose the goal of a government is to raise as much money as possible to fund governmental services. Should the government target goods and services that have an inelastic or elastic ED? Why?
