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Concerns about the environment prompt Congress to pass a $1 surcharge tax on each gallon of gasoline. Which statement best describes the impact of such
Concerns about the environment prompt Congress to pass a $1 surcharge tax on each gallon of gasoline. Which statement best describes the impact of such a tax? Question 5 options: Because of high elasticity of demand for gasoline, additional taxes would likely have little impact on demand. Production and shipping costs would increase, thus increasing the cost of consumer goods and services. These higher costs could likely lead to slowing economic growth. An additional excise tax could make the market for gasoline more efficient by eliminating excessive consumption. The tax would accelerate rapid transition to electric vehicles, lead to increasing GDP and lower rates of unemployment
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