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)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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