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

Question 183

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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 S 1 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 1 to S 2. 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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