Solved

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

Question 109

Multiple Choice

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 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.
-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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions