Because increased ethanol production improves the terms of trade in both the export of corn and the import of oil, we determine the optimal tax credit and the conditions affecting it. Historically, the intercept of the ethanol supply curve is above the gasoline price. Hence, part of the tax ...
A tax on sellers increases supply. a. True. b. False. True or false? The burden of an excise tax on gasoline falls entirely on consumers of gasoline. The effect of the tax on the quantity sold would have been the same as if the tax had been levied on con...
Because increased ethanol production improves the terms of trade in both the export of corn and the import of oil, we determine the optimal tax credit and the conditions affecting it. Historically, the intercept of the ethanol supply curve is above the gasoline price. Hence, part of the tax ...