Income taxes and property taxes generate the highest tax revenue for state and local governments

Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas

Using Lisa's utility function, calculate how many burritos she consumes.

Lawmakers can decide whether the buyers or the sellers must send a tax to the government, but they cannot legislate the true burden of a tax

a. True b. False Indicate whether the statement is true or false