1.2 Suppose the current price of gasoline at the pump is $1 per gallon and that 1 million gallons are sold per month.

A politician proposes to add a 10-cent tax to the price of a gallon of gasoline. She says the tax will generate

$100,000 tax revenues per month (1 million gallons 

$0.10  $100,000).What assumption is she making?