Statement I: The lowering of the tax on gasoline will increase the supply of gasoline.
Statement II: When demand is perfectly elastic,a tax burden will be borne entirely by buyers.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

The Answer of Statement I: The lowering of the tax on gasoline will increase the supply of gasoline.
Statement II: When demand is perfectly elastic,a tax burden will be borne entirely by buyers.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Statement I: the Lowering of the Tax on Gasoline Will