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Assume that the government is considering imposing a tax of 0.25 per liter on domestic heating oil to incentivize households to switch to more environmentally
Assume that the government is considering imposing a tax of 0.25 per liter on domestic heating oil to incentivize households to switch to more environmentally friendly ways of keeping their homes warm. a. Describe how this policy will affect the price and quantity in the market for heating oil. Use a graph to support your answer. b. Assuming that this tax is imposed today. Will this policy be more successful now or after ten years? Use a second graph to back your claim
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