Which good should be taxed and why

Reference no: EM133442306

Question: The local government is considering imposing a revenue-neutral case) 6.25% tax on either tanning beds or soft drinks. Tanning has an elasticity of demand = Ea = -0.9.while soft drinks ed = -0.7. Assume the supply curves have the same elasticity: from an economist's perspective, which good should be taxed and why

Reference no: EM133442306

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