Smoking cigarettes is a leading cause of many diseases. The government has opened several public clinics that treat smoking-related diseases and is trying to decide how to fund these clinics. One suggestion is to raise the funds by imposing a tax on expensive cars and yachts. This tax follows .
A. The ability-to-pay principle
B. Neither the ability-to-pay principle nor the benefits principles
C. Both the ability-to-pay and benefits principles
D. The benefits principle

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.