Question #136150
Say the City of Chicago is considering between two different excise taxes as a way to increase City revenue: an excise tax on gasoline sold in the City, or an excise tax on second (vacation) homes. Which of these two taxes is probably going to have a more negative impact on the City's economy?
both taxes will increase quantity sold
the tax on gasoline
the tax on second homes
both taxes will have the same effect
both taxes will increase quantity sold
the tax on gasoline
the tax on second homes
both taxes will have the same effect
Expert's answer
The tax on second homes
