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