Problem
Because of the negative incentive effect that taxes have on goods with elastic supply, in the late 1980s Margaret Thatcher (then prime minister of Great Britain) changed the property tax to a poll tax (a tax at a set rate that every individual must pay).
a. Show why the poll tax is preferable to a property tax in terms of consumer and producer surplus.
b. What do you think the real-life consequences of the poll tax were?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.