Can it do this by taxing domestic heating oil

Reference no: EM13952745

The elasticity of demand for domestic heating oil is -o.5, and for gasoline is -1.5. The price of both sorts of fuel is 6oc/ per litre: included in this price is an excise tax of 48c/ per litre. The government wants to reduce energy consumption in the economy and to increase its tax revenue. Can it do this (a) by taxing domestic heating oil? (b) by taxing gasoline?

Reference no: EM13952745

Questions Cloud

Draw the technology set q for a single firm : In an economy the activity of digging holes in the ground is carried out by self-employed labourers (single-person firms). The production of one standard- sized hole requires a minimum input of one unit of labour. No self-employed labourer can pro..

What was the legislation from the uk friedman : What was the legislation from the UK Friedman is referring to on page 12, the "control of engagement order"? According to the website UnionHistory.info, ´´This regulation ensured that anyone looking for work should apply through Ministry of Labour..

Determine the impact on earnings of the above hedges : Impact on earnings of an option and an interest rate swap. Determine the impact on earnings of the above hedges for the ?rst and second 30-day period.

Justify legacy system interface requirements : An analyst must consider several issues that will affect the architecture choice. I need to know if all items below are of equal weight and importance, or should some be ranked higher? Justify your position.

Can it do this by taxing domestic heating oil : The elasticity of demand for domestic heating oil is -o.5, and for gasoline is -1.5. The price of both sorts of fuel is 6oc/ per litre: included in this price is an excise tax of 48c/ per litre. The government wants to reduce energy consumption..

Study to improving the acceptance of new technology : Simon and Paper (2007) explore the topic of user acceptance to new technologies; in this case voice recognition technology. Reviewing the general constructs of the TAM model the author's analyze, discuss the application of this model and the resul..

How the financial performance of the business : Write a memo to the managing director of the worst performing company with recommendations of how the financial performance of the business can be improved - Outline the limitations of relying on financial ratios to interpret firm performance?

Do the actions of this consumer conform to the basic axioms : You observe a consumer in two situations: with an income of $100 he buys 5 units of good 1 at a price of $10 per unit and 10 units of good 2 at a price of $5 per unit. With an income of $175 he buys 3 units of good 1 at a price of $15 per unit an..

Compare the different observances of the orthodox jews : How would you compare the different observances of the Orthodox Jews, the Hasidic, the Conservative Jews, the Reform Jews, and the Reconstructionist Jews

User Account

All Pages