A $1-per-gallon tax on the sale of gasoline will raise the price by $1 per gallon ifSelect one:a. the supply is perfectly inelastic.O b. the demand is unit elastic.the supply is perfectly elastic.O d. the demand is perfectly elastic.

Tax incidence depends on the price elasticity of demand and supply.

A $1-per-gallon tax on the sale of gasoline will raise the price by $1 per gallon if Select one: the supply is perfectly inelastic. O b. the demand is unit elastic. O c. the supply is perfectly elastic. O d. the demand is perfectly elastic.

A $1-per-gallon tax on the sale of gasoline will raise the price by $1 per gallon if Select one: the supply is perfectly inelastic. O b. the demand is unit elastic. O c. the supply is perfectly elastic. O d. the demand is perfectly elastic.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 5CQQ: An increase in the supply of a good will decrease the total revenue producers receive if a. the...

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A $1-per-gallon tax on the sale of gasoline will raise the price by $1 per gallon if
Select one:
a. the supply is perfectly inelastic.
O b. the demand is unit elastic.
the supply is perfectly elastic.
O d. the demand is perfectly elastic.

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