Q18

[tzyc]

I'd like to double check whether I understand this correctly...
The passage says less-polluting fuel=low tax,
higher tax=more pollute.
A is correct because if the total cost (not only tax fees) is less for the higher taxed fuel, it would not lead people to buy it less...which means the tax would not induce indstry to substitute less-polluting fuels correct? So both of them assume people buy cheaper ones, and the sentence in the passage also assumes higher tax=higher total cost and A attacks the assumption-is this correct?
...Since it does not have premise and conclusion maybe I should not say "assumption" though

Thank you

[tommywallach]

Hey Strawberry,

That is 100% correct. The point of a tax is that people will move to the cheaper thing. But if the more-polluting thing remains cheaper after the tax (because it was that much cheaper in the first place), people won't switch.

Well done!

-t