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

Multiple Choice

Use the figure below to answer the following question(s) . Figure 4-9
Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b. If a $.40 excise tax was imposed,

A) the supply of gasoline would shift to S₂.
B) the price of gasoline to consumers would increase from $1.20 per gallon to $1.40 per gallon.
C) the net price received by producers of gasoline would decline from $1.20 per gallon to $1.00 per gallon.
D) all of the above would occur.