At the end of 2015, the mayor of East Magoo made the following statement: Even after we
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At the end of 2015, the mayor of East Magoo made the following statement: “Even after we increased the energy use tax, average power consumption increased in our town. This proves that the tax increase did not cause our residents to decrease electricity use, and in fact, it appears to have encouraged them to use more electricity!” What is wrong with the mayor’s logic?
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While electricity use did indeed increase in East Magoo during ...View the full answer
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Related Book For 
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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