Order the answer to: Gasoline currently sells for $3…
| Question | Gasoline currently sells for $3 a gallon. Suppose the government simultaneously institutes a sales tax of 10¢ per gallon and an excise subsidy of 10¢ per gallon. (The “excise subsidy” means that every time you sell a gallon of gasoline, you get a dime from the government.) What is the new price of gasoline? Are demanders ed or hurt by this pair of policies? What about suppliers? |
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| Subject | business-economics |
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