The Government Decides to Reduce Air Pollution by Reducing the Use

question 13

Essay

The government decides to reduce air pollution by reducing the use of petrol. It imposes a tax of R0.50 on each litre of petrol sold.
a. Should it impose this tax on petrol companies or motorists? Create a graph to justify your answer.
b. If demand for petrol were more elastic, would this tax be more or less effective in reducing the quantity of petrol consumed?
c. To what extent are consumers of petrol and oil industry workers affected by this tax?

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Definitions:

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Pons

A part of the brain located in the brainstem, crucial for relaying messages between the cerebrum and the cerebellum, and involved in functions such as sleep and breathing.

Cognitive Theory

A theory of psychology that emphasizes internal states, such as motivation, problem solving, decision-making, thinking, and attention.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting unconscious desires or concerns.