Question

The federal government is concerned about obesity in the United States. Congress is considering two plans. One will ban the production and sale of “junk food.” The other will increase nutrition-education programs and include substantial advertising campaigns to encourage healthy eating habits. In a clearly labeled separate diagrams, explain the effect of each of the above plans on the market price and quantity of Junk Foods. Which of these plans you would recommend to congress in its efforts to curb obesity in the U.S.? Give a reason for your answer

Answer 1

The junk food ban program will reduce the quantity of junk food sold and raise the price. The education program will reduce the quantity of junk food sold and lower the price.