Order the answer to: As newly appointed “Energy Czar,” your goal is to reduce

Homework Assistance business-economics Order the answer to: As newly appointed “Energy Czar,” your goal is to reduce

business-economics

Order the answer to: As newly appointed “Energy Czar,” your goal is to reduce

Question As newly appointed “Energy Czar,” your goal is to reduce the total demand for residential heating fuel in your state. You must choose one of three legislative proposals designed to accomplish this goal: (a) A tax that would effectively increase the price of residential heating fuel by $2; (b) A subsidy that would effectively reduce the price of natural gas by $1; or (c) A tax that would effectively increase the price of electricity (produced by hydroelectric facilities) by $5. To assist you in your decision, an economist in your office has estimated the demand for residential heating fuel using a linear demand specification. The regression results are presented on (page 114). Based on this information, which proposal would you favor? Explain.
Subject business-economics
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