### Levied on groceries or meals at fancy restaurants

##### Reference no: EM131085125

Would the DWL of a tax be larger if the tax (assuming the same size of tax per unit of product) were levied on groceries or meals at fancy restaurants? ? In order to minimize the DWL of a tax, should the government levy tax on groceries or meals at fancy restaurants? Is it fair? Please explain.

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Johnny is an impoverished college student who works at a bakery full time while attending school. After spending money on rent, tuition, and books, he only has \$80/month left