Suppose that the amount of revenue pq of yachts and

Question

Consider 2 goods: yachts and vegetables. For each good, think of 2 markets: the market for the good itself, and the labor market for people producing those goods. Suppose that the government is considering a 10% tax on yachts and on vegetables.

1. In which market for the 2 goods should the consumers have the lesser incidence of the tax?
2. Which good should be taxed if the government wanted to minimize effects on employment?
3. Suppose that the amount of revenue (P*Q) of yachts and vegetables was the same in the economy. Which should be taxed 10% if the government wanted to raise more revenue?