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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
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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