Soda Tax Layoffs
Local restaurants are now offering giant sodas, filled with sugar. The child-sized soda is actually the size of a small child! Leslie proposes a soda tax to cut back on citizen’s consuming the sugary beverages, but a representative of the Pawnee Restaurant Association warns Leslie against doing so. Because this will limit the number of sodas being sold, restaurants may have to layoff up to 100 workers and Leslie will be the one to blame.
See more: deadweight loss, labor, labor demand, layoffs, price controls, taxes, unemployment, unintended consequences