Facing this question, which kind of framework should we adopt?

[DM] Very good,

what are the agents? [C,P,G] Good, At your tables discuss how to answer.Keep in
mind you are looking at impact on consumers, producers and government. I see
some of you highlighting, good,

What impact on consumers are?

Poor consumers will suffer, why do you say that? Is there evidence from the extract?
Yes exactly, extract gives you the answer. Poor will be disproportionately affected
Why is this? Give you a hint, tax that is percentage of price what kind of tax is it? Ad
Valorem. What other property of tax is this? Regressive and regressive by definition
means that it affects people with lower income more.
Now this regressive tax, how will it impact the producers? Bear part of the tax,
how is it determined? PES relative to PED. Jeremy tell me what she had in mind.
Producers will substitute