One of the proposals to reduce harmful Carbon Dioxide emissions is a Carbon Tax. The tax is applied at the point of production so it is paid by the producers. The goal of the tax is to get businesses to reduce the carbon dioxide that their companies "pump" into the atmosphere causing pollution and environmental damage.

1.If the Emissions Tax is adopted, will the tax shift the demand curve for the buyers of products faced with the tax, the supply curve for the producers faced with the tax, or neither? Explain the shift in detail making sure to explain which determinant caused the change.

2.Who will benefit from the Carbon Tax? Explain in detail using the concepts of Supply and Demand in your explanation.

3.Who will be hurt by the Carbon Tax? Explain in detail using the concepts of Supply and Demand in your explanation.

4.If you were a Representative or Senator in Congress, would you vote in favor of imposing a Carbon Tax. Explain in detail why you would vote in favor or against the tax.