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Use the Figure Below to Answer the Following Question(s)

Question 87

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Use the figure below to answer the following question(s) .
Figure 4-7 Use the figure below to answer the following question(s) . Figure 4-7   -Refer to Figure 4-7. The supply curve S<sub>1</sub> and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S<sub>1</sub> to S<sub>2</sub>. Imposing the tax causes the equilibrium price of gasoline to increase from A)  $.80 to $1.40. B)  $.80 to $1.50. C)  $.90 to $1.50. D)  $.90 to $1.40.
-Refer to Figure 4-7. The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied, which shifts the supply curve from S1 to S2. Imposing the tax causes the equilibrium price of gasoline to increase from


A) $.80 to $1.40.
B) $.80 to $1.50.
C) $.90 to $1.50.
D) $.90 to $1.40.

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