Question: How do I indicate this on a graph please and thank you 1: __.v I V. . . ...._...__ fails to take the possibility for
How do I indicate this on a graph please and thank you

"\"1: __.v I\" V.\" . . ...._...__ fails to take the possibility for theirpollutlng actions. In the case. second one is the reason why the Canadian government decided to intervene in the market by place carbon tax on polluting industries like oil and gas. 1) This invention itself will cause a market distortion effect the set equilibrium by the market. When the carbon tax is set in place it causes sudden increase in the price of oil resulting decrease in quantity demanded by the consumers and quantity supplied into market by the producer. Though this effect mostly last in the short run. in the long run the market will adjust to the new prices and will create new equilibrium price in the market. 2) In the short run, burden of these tax will fall on the consumer because the demand for oil is inelastic in the short run, because cannot change their rate of consumption of oil suddenly. in the long run. burden of these tax will end up equally falling on consumers and producers due to arise of new equilibrium because of change in quality demanded and supplied. Government can mitigate the impact of the Deadweight Loss (D.W.L.) on the country's GDP by reinvesting the revenue from the carbon tax to inoentivize and promote new high revenues industries like electric cars, development of more fuel efcient cars and other carbon footprint reducing industries
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