Suppose that gasoline is not currently taxed in the country of Autopia, and the price of gasoline is $3.00 a gallon. In order to alleviate problems with air pollution and traffic, the government of Autopia decides to institute a $0.50 a gallon tax on gasoline. After the tax, the price of gasoline rises to $3.45 a gallon.

a. Assuming no other significant changes in the gasoline market, what can we conclude about the elasticity of demand for gasoline in Autopia?

b. Draw a supply-and-demand graph illustrating the effects of the gasoline tax. Assume that the supply of gasoline is not particularly elastic or inelastic.

c. Who has borne most of the burden of this tax, consumers or producers?

d. Do you think that the tax will be effective in reducing Autopia’s problems with air pollution and traffic? Why or why not? Support your answer with reference to your graph.

 

1. LearningLetters.Com is a learning platform and app business that plans to emphasize treating its employees and customers very well. Salary and benefits paid to employees working at LearningLetters.Com will be above industry standard. Which of the following best describes LearningLetters.com’s organizational culture based on the OCP framework?

outcome-oriented
service-oriented
team-oriented
people-oriented
QUESTION 10
1. Inaya is the new CEO of a large networking company that is known for treating her exmployees poorly. She knows she is responsible for implementing a culture change within the organization. Recognizing this, she designs a plan with the six steps to culture change, which include:

Create a sense of stability, change leaders and other key players, role model, train, change the reward system and create new stories and symbols.

Create a sense of urgency, change leaders and other key players, build model trains, change the reward system and create new stories and symbols.

Create a sense of urgency, change leaders and other key players, role model, train, change the reward system and create new stories and symbols.

Create a sense of urgency, train leaders and other key players, role model, add more money to the reward system budget and create new stories and symbols.
QUESTION 11
1. If you are creating a change vision, encouraging participation and developing a sense of urgency you are likely:

changing
resisting
unfreezing
refreezing

QUESTION 12
1. One of the leadership traits discussed in the textbook is intelligence. Two specific types of intelligence are presented:

textbook knowledge and “street smarts”.

experience and critical thinking.

mental abilities and emotional intelligence
intuition and logic.