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Question 61 The oil price is 0.5 dollars per gallon and Annie uses 6000 gallons per year. Suppose that other goods' price stays the same

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Question 61 The oil price is 0.5 dollars per gallon and Annie uses 6000 gallons per year. Suppose that other goods' price stays the same when there is a tax. When there is a tax, the price of oil raises to 0.55 dollars per gallon. However, Annie has got 425 dollars of subsidy annually. Question: 1. Whether Annie is worse off or not. 2. Whether Annie will demand more oil or less oil. Provide at least 300 words

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