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

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Microeconomics

ISBN: 9780324785494

9th Edition

Authors: Roger A. Arnold

Question Posted: