Question
Sally's household consumes 1,000 litres of gasoline per year. After $0.20 gasoline tax was introduced, each household received an annual tax rebate. Is Sally's household
Sally's household consumes 1,000 litres of gasoline per year. After $0.20 gasoline tax was introduced, each household received an annual tax rebate. Is Sally's household better off or worse off with tax and rebate than without both if the annual tax rebate is:
1) With $200 tax rebate, Sally's household is?
a. Better-off
b. Worse-off
c. Could be either better-off or worse-off
2) With $300 tax rebate, Sally's household is?
a. Better-off
b. Worse-off
c. Could be either better-off or worse-off
3) With $100 tax rebate, Sally's household is?
a. Better-off
b. Worse-off
c. Could be either better-off or worse-off
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started