Economics of Public Issues (20th Edition) (The Pearson Series in Economics)
Economics of Public Issues (20th Edition) (The Pearson Series in Economics)
20th Edition
ISBN: 9780134531984
Author: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
Publisher: PEARSON
Question
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Chapter 7, Problem 2DQ
To determine

To identify:

The party who would benefit from the menu mandate and its reasons. The cost involved in creating menu mandates.

Concept introduction:

Menu mandates:

For the awareness of the consumers about their calorie consumption, an act was formed. According to this act, calories should be mentioned on packed eatables in the form of menu mandates, which reveal the unit of calories consumed.

Explanation:

It is assumed that if consumers know how many calories they are consuming, then they will keep their consumption in check.

Therefore, to solve the problem of obesity, a law was formulated in America to mention the number of calories on many eatable products. This would benefit consumers the most since obesity is linked to several diseases like heart problems etc. So these consumers would benefit over the longer term in terms of staying healthy, paying less for medical insurance etc. As this spreads society as a whole would benefit.

There are costs associated with menu mandates, as there will be a need to change labeling on each product to reflect the calories associated with that product. So the cost of manufacturing would increase.

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Chapter 7 Solutions

Economics of Public Issues (20th Edition) (The Pearson Series in Economics)

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