Ab 8 Economics This tax would be less effective in reducing the quantity of gasoline consumed if the demand for gasoline were elastic.True or False: Consumers of gasoline are hurt by this tax.O TrueFalseWorkers in the oil industry areby this tax. Congress and the president decide that the United States should reduce air pollution by reducing its use of gasoline. They impose a $0.50 tax on eachgallon of gasoline sold.Suppose they decided to impose the tax on producers.In the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on producers by shifting the demand or supply curve.Price of Gasoline (Dollars per gallon)3.02.500O True3FalseSupplyDemand125Quantity of Gasoline (Thousands of gallons)6DemandTrue or False: The effect of the tax will be the same regardless of whom the tax is imposed on.Supply

Every commodity's price elasticity of demand will be elastic if there are several substitute…

This tax would be less effective in reducing the quantity of gasoline consumed if the demand for gasoline were True or False: Consumers of gasoline are hurt by this tax. True False Workers in the oil industry are by this tax. elastic.

This tax would be less effective in reducing the quantity of gasoline consumed if the demand for gasoline were True or False: Consumers of gasoline are hurt by this tax. True False Workers in the oil industry are by this tax. elastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Ab 8

Economics

This tax would be less effective in reducing the quantity of gasoline consumed if the demand for gasoline were elastic.
True or False: Consumers of gasoline are hurt by this tax.
O True
False
Workers in the oil industry are
by this tax.

Congress and the president decide that the United States should reduce air pollution by reducing its use of gasoline. They impose a $0.50 tax on each
gallon of gasoline sold.
Suppose they decided to impose the tax on producers.
In the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on producers by shifting the demand or supply curve.
Price of Gasoline (Dollars per gallon)
3.0
2.5
0
0
O True
3
False
Supply
Demand
1
2
5
Quantity of Gasoline (Thousands of gallons)
6
Demand
True or False: The effect of the tax will be the same regardless of whom the tax is imposed on.
Supply

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