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Re: [[carfree_cities] Bush's new oil ads]

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  • webmaster@westbynorthwest.org
    ... Demand doesn t change --people would still want the same amount of gas at a given price-- but the quantity demanded has decreased since the tax has raised
    Message 1 of 2 , Apr 2, 2004
      > I know, when you raise prices, demand decreases.

      Demand doesn't change --people would still want the same amount of gas at a
      given price-- but the quantity demanded has decreased since the tax has raised
      the price. A tax isn't payed for all by consumers, producers also pay some of
      the cost, but since the demand for gas is very inelastic (in the short run),
      consumers pay the cost of most of the tax.

      Just a little econ in action.

      --Patrick
      Portland, OR
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