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How Does the Study Reported in the Evidence-Based Economics Element

Question 70

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How does the study reported in the Evidence-Based Economics element in this chapter demonstrate the law of demand?


A) It relies on theoretical graphs of the demand curve for gasoline.
B) It uses different tax and subsidy policies across Latin American countries as a natural experiment.
C) It compares the quantity demanded before and after the Venezuelan government ended gasoline subsidies.
D) It compares the quantity demanded between Latin American countries and Middle East countries.

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