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(Solved by Expert Tutors) Gas prices fluctuate often and in both directions. In your initial post


  • How responsive do you think consumers will be to the price change when these fluctuations occur due to changes in supply? Why? Use the various determinants of elasticity to explain your answer.
  • How does the price elasticity of demand for gasoline impact the effectiveness of taxes on gasoline aimed at correcting a negative externality?

 


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Apr 19, 2020

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