29. The government is thinking about increasing the gasoline tax to promote conservation. The tax will discourage the consumption of gasoline by the greatest extent when the price elasticity of demand equals Question 11Select one: a. 0.1. b. 1.3. c. 0.7. d. 2.0.

29. The government is thinking about increasing the gasoline tax to promote conservation. The tax will discourage the consumption of gasoline by the greatest extent when the price elasticity of demand equals Question 11Select one: a. 0.1. b. 1.3. c. 0.7. d. 2.0.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section: Chapter Questions

Problem 4CQQ

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Question 11Select one:

0.1.

1.3.

0.7.

2.0.

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29. The government is thinking about increasing the gasoline tax to promote conservation. The tax will discourage the consumption of gasoline by the greatest extent when the price elasticity of demand equals Select one: a.1.3. b.2.0. c.0.1. d.0.7.
8. Suppose we want regular cars to be gradually replaced by electric cars. There are several kinds of government interventions that could be used to make this happen, or at least to push the car market to produce and sell more electric cars. Explain how a tax could be used for this purpose, and then explain how a subsidy could be used for this purpose.
EOC 9.01 If the government decides to increase the tax on gasoline from $0.10 to $0.12 per litre, what happens to the deadweight loss from this tax? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. It rises by more than 20%. a b It rises by less than 20%. It rises exactly 20%. Deadweight loss will not change.
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