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Suppose the Pre-Tax Price of Gasoline Is $1/gallon

Question 8

Multiple Choice

Suppose the pre-tax price of gasoline is $1/gallon.An imposed tax of $0.50/gallon is paid by producers to the government,increasing the price of gasoline to $1.30/gallon.The gross price after the tax is _____; the after-tax price is _____.


A) $1.30; $0.80
B) $1.30; $1.80
C) $1.80; $1.30
D) $1.80; $0.80

Correct Answer:

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