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Unformatted text preview: 4. Use supply and demand to illustrate the impact of a carbon tax on the market for gas. The demand line will shift to the right because, there will be more buyers then there was before. The carbon tax will not cause anyone to stop driving and buying gas, but there will be kids getting to the point where they can drive to school, work, or just going out, which will increase the buyers on gas therefore causing a increase in demand. The demand line increasing, the supply line will decrease because there will be more people demanding it which will cause a shortage....
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- Fall '11