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To: Red Badger

Another economically ignorant article.

When Canadians pay $5.00 for gas, and Americans pay $3.00 for gas, the question is: How many miles does each driver drive?

If the average American drives 12,000 miles per year, and the average Canadian (because of the higher fuel costs) drives 10,000 miles per year, then the effect of the higher Canadian price is fully explained by a reduction in the quantity demanded.

Jeez. This was from Seeking Alpha?


6 posted on 04/05/2011 8:12:38 AM PDT by Uncle Miltie (0bamanomics: Trickle Up Poverty.)
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To: Uncle Miltie
Econ 101 reminder: The Tax Wedge effect:


13 posted on 04/05/2011 8:19:30 AM PDT by Uncle Miltie (0bamanomics: Trickle Up Poverty.)
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