Question
In order to fight against energy dependence, the government imposes a tax of one EUR per liter of gasoline. Calculate the new equilibrium prices and
In order to fight against energy dependence, the government imposes a tax of one EUR per liter of gasoline. Calculate the new equilibrium prices and quantity.
In the presence of a tax, there will be a difference of 1 EUR between what the buyers pay and what the gasoline vendors receive. Therefore, Pb = Pv + 1
Question: I dont understand why Pb = Pv + 1 , can you explain this for me pls?
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Technical Change, Relative Prices, And Environmental Resource Evaluation
Authors: V Kerry Smith
1st Edition
1317358570, 9781317358572
