The government wishes for Alonso to buy fewer sport cars because they create too much pollution. The government decides to place a tax on the price of sport cars. How large does 7 need to be so that Alonso buys half of his original number of sport cars? What is Alonso's new utility under the tax? T= 2, V = 450 T= 2, V = 400 T = 1.5, V = 350 T = 1, V = 500

The government wishes for Alonso to buy fewer sport cars because they create too much pollution. The government decides to place a tax on the price of sport cars. How large does 7 need to be so that Alonso buys half of his original number of sport cars? What is Alonso's new utility under the tax? T= 2, V = 450 T= 2, V = 400 T = 1.5, V = 350 T = 1, V = 500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Define Economic utility
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