Gus spends his income on gas for his car and food.

| November 24, 2016
    Gus spends his income on gas for his car and food. The government raises the tax on gas, thereby raising the price of gas. But the government also lowers the income tax, thereby increasing Gus’ income. And this rise in income is just enough to place Gus on the same indifference curve as the one he was on before the price of gas rose. Will Gus buy more, less, or the same amount of gas as before these changes? Illustrate your answer with a diagram, placing gas on the horizontal axis and food on the vertial axis
Get a 30 % discount on an order above $ 5
Use the following coupon code:
CHRISTMAS
Order your essay today and save 30% with the discount code: CHRISTMASOrder Now
Positive SSL