Q. Assume the current cost of gasoline at the pump is $1 per gallon also those 1 million gallons are sold per month. A politician proposes to add a 10¢ tax to the cost of a gallon of gasoline. She says the tax will generate $100,000 tax income per month (1 million gallons × $0.10 = $100,000). Illustrate what assumption is she making?

Q. If lots of people want Euros also Euros are in short supply also a few people want Japanese yen also yen are in plentiful supply the euro is likely to?