4 Suppose the current price of gasoline at the pump is $3 per gallon and that 1...
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4 Suppose the current price of gasoline at the pump is $3 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?
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