To reduce the dependence on foreign oil supplies, the government is thinking of increasing the federal taxes

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To reduce the dependence on foreign oil supplies, the government is thinking of increasing the federal taxes on gasoline. Suppose the Ford Motor Company has hired you to assess the impact of the tax increase on the demand for its cars. How would you go about advising the company?
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Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

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