Home » a; ‘1″ Suppose that the average household in a state consumes 500 gallons of gasoline a year. A 10 cent tax per gallon of gasoline is introduced, and…

# a; ‘1″ Suppose that the average household in a state consumes 500 gallons of gasoline a year. A 10 cent tax per gallon of gasoline is introduced, and…

Suppose that the average household in a state consumes 500 gallons of gasoline a year. A 10 cent tax per gallon of gasoline is introduced, and couples are given a \$50 annual tax rebate per household. Will the household be better or worse oﬀ after the new program is introduced? Use a well annotated graph in your explanation. (Hint: Reference the Chapter 4 Challenge Solution for ideas on how to think about this problem.)

a; ‘1“ Suppose that the average household in a state consumes 500 gallons of gasoline a year.A 10 cent tax per gallon of gasoline is introduced, and couples are given a \$50 annualtax rebate per household. Will the household be better or worse off after the newprogram is introduced? Use a well annotated graph in your explanation. (Hint: Ref-erence the Chapter 4 Challenge Solution for ideas on how to think about this problem.)

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