Author Question: Jon spends all of his income on energy drinks (E) regardless of the price and his income. Derive ... (Read 62 times)

lindiwe · **on:** Jul 1, 2018

Jon spends all of his income on energy drinks (E) regardless of the price and his income. Derive Jon's demand equation for energy drinks, E(p,Y).

What will be an ideal response?

Question 2

Assume Congress decides that oil companies are making too much profit and decides to increase the tax on oil companies for each gallon of gasoline produced. This would

A) guarantee a decrease in profits.
B) guarantee an increase in profits.
C) guarantee an increase in tax revenues.
D) None of the above.