What Happens After the Government Levies the Tax on Gasoline

Multiple Choice

What happens after the government levies the tax on gasoline

A) It does not reduce traffic volume.
B) It is the best solution to road congestion because it gives private individuals an incentive to internalize the congestion externality.
C) It discourages driving on noncongested roads even though there is no congestion externality for these roads.
D) It has little effect on driving behaviour.