Multiple Choice
Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the income tax affect gasoline consumption to answer the following question(s) . This Application discusses a gasoline tax increase which is combined with a cut in income taxes to ensure that total tax revenue does not change.
-Recall the Application.How would a simultaneous increase in the gasoline tax a decrease in the income tax effect gasoline consumption?
A) Consumption will decrease.
B) Consumption will stay the same.
C) Consumption will increase.
D) None of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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