Consider the maker for gasoline. a. Start in Equilibrium (be sure to label all relevant points) b. Change at least one of the ceteris paribus conditions. Because of persistent budget deficits, Georgia politicians propose an increase in the taxes on gasoline sales. c. Examine the changed incentive. Which curve(s) has(have) changed? Why? (i.e. – which of the ceteris paribus conditions have changed?) _______________________________________________________ d. Identify the change(s) in direction
Consider the maker for gasoline. a. Start in Equilibrium (be sure to label all relevant points) b. Change at least one of the ceteris paribus conditions. Because of persistent budget deficits, Georgia politicians propose an increase in the taxes on gasoline sales. c. Examine the changed incentive. Which curve(s) has(have) changed? Why? (i.e. – which of the ceteris paribus conditions have changed?) _______________________________________________________ d. Identify the change(s) in direction
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST7: The Economics Of Health Care
Section: Chapter Questions
Problem 7CQ
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7. Consider the maker for gasoline.
a. Start in Equilibrium (be sure to label all relevant points)
b. Change at least one of the ceteris paribus conditions. Because of persistent budget deficits, Georgia politicians propose an increase in the taxes on gasoline sales.
c. Examine the changed incentive. Which curve(s) has(have) changed? Why? (i.e. – which of the ceteris paribus conditions have changed?) _______________________________________________________
d. Identify the change(s) in direction, and draw into the above market.
e. Finish in equilibrium. What are the effects on price and quantity?
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