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Question 174

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Use the following to answer questions:
Figure: Demand Tax Use the following to answer questions: Figure: Demand Tax -(Figure: Demand Tax) The figure illustrates a market for gasoline with a $1 tax imposed on the buyers. What price do buyers pay for a gallon of gasoline in this market? A) $3.50 B) $3 C) $2.50 D) between $2.50 and $3.50, depending on the elasticity of supply
-(Figure: Demand Tax) The figure illustrates a market for gasoline with a $1 tax imposed on the buyers. What price do buyers pay for a gallon of gasoline in this market?


A) $3.50
B) $3
C) $2.50
D) between $2.50 and $3.50, depending on the elasticity of supply

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