Answer the Following

question 46

Essay

Answer the following:
a)Sarah drives 6 miles to work every day.Liam takes the same route but has to drive for a total of 11 miles.With the objective of reducing traffic jams,the government decides to impose a tax on drivers.How would an annual fixed payment of $500 as congestion charges affect Sarah and Liam? Explain your answer using indifference curves and a common budget line for Liam and Sarah.
b)What if the government decided to impose a fee of $1 per mile driven?

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Definitions:

Agricultural Society

A society primarily engaged in agriculture, focusing on farming and livestock raising as its main economic activities.

Revolutionary Technology

Innovations that radically change existing industries, economies, and societal practices.

Genetic Engineering

The direct manipulation of an organism's genes using biotechnology to alter its characteristics, often for purposes like improving health, enhancing resistance to diseases, or modifying physical traits.

New Life Forms

Organisms that have recently been discovered, created, or significantly altered through processes such as genetic engineering.