Is the following statement true or false? Given is the graph below of the oil market. Without the tax, the equilibrium quantity would be 4 million gallons. The tax reduces this to 2 million gallons. The price buyers pay after the introduction of the tax is $5 per gallon. Oil Market with Tax 6.00 5.50 5.00 4.50 4.00 3.50 с D 3.00 2.50 2.00 1.50 1:00 0.50 0.00 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 Quantity (Gallons of oil, millions) Price ($ per gallon)
Is the following statement true or false? Given is the graph below of the oil market. Without the tax, the equilibrium quantity would be 4 million gallons. The tax reduces this to 2 million gallons. The price buyers pay after the introduction of the tax is $5 per gallon. Oil Market with Tax 6.00 5.50 5.00 4.50 4.00 3.50 с D 3.00 2.50 2.00 1.50 1:00 0.50 0.00 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 Quantity (Gallons of oil, millions) Price ($ per gallon)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Is the following statement true or false?
Given is the graph below of the oil market. Without the tax, the equilibrium
quantity would be 4 million gallons. The tax reduces this to 2 million gallons.
The price buyers pay after the introduction of the tax is $5 per gallon.
Oil Market with Tax
6.00
5.50
5.00
4.50
A
4.00
3.50
с
D
3.00
2.50
2.00
1.50
1.00
0.50
0.00
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6
6.5 7 7.5 8
Quantity (Gallons of oil, millions)
True
False
Price ($ per gallon)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F47f935e3-ca7e-4899-a078-eb794483c95f%2F99f5e69d-a499-43ce-b008-7bc8821d92de%2F6cubipq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Is the following statement true or false?
Given is the graph below of the oil market. Without the tax, the equilibrium
quantity would be 4 million gallons. The tax reduces this to 2 million gallons.
The price buyers pay after the introduction of the tax is $5 per gallon.
Oil Market with Tax
6.00
5.50
5.00
4.50
A
4.00
3.50
с
D
3.00
2.50
2.00
1.50
1.00
0.50
0.00
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6
6.5 7 7.5 8
Quantity (Gallons of oil, millions)
True
False
Price ($ per gallon)
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