Microeconomics
Microeconomics
10th Edition
ISBN: 9781259655500
Author: David C Colander
Publisher: McGraw-Hill Education
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Chapter 8, Problem 4QE
To determine

The impact of imposing higher tax on oil.

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Students have asked these similar questions
What happens in the market for a good that pollutes the air when it is manufactured if government decides to tax consumers when the product is purchased? Will this reduce the amount of air pollution?
What are pollution havens? How are they created or why do they exist? Why do economists think they may change over time and develop policies to reduce pollution?
It’s common to think that reducing pollution is necessarily costly because to reduce pollution we need to tax firms who will then produce less. But can you think of one example in which pollution might not only be unpleasant but might actually reduce production?

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