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OK, so let's check whether that holds up: Suppose petrol was taxed at 1000 EUR/l and diesel was taxed at 0.01 EUR/l. Do you think that that would lead to less c
by zAy0LfpBZLC8mAC 9y ago
OK, so let's check whether that holds up: Suppose petrol was taxed at 1000 EUR/l and diesel was taxed at 0.01 EUR/l. Do you think that that would lead to less consumption of diesel than in the no-intervention equilibrium with the seller receiving payments below the no-intervention equilibrium price?