Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic.If the federal government eliminated the 18.4 cents per gallon gasoline tax,the price paid by buyers would

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The elimination of the gasoline tax would lead to a decrease in the cost of production for sellers, allowing them to potentially lower their prices to buyers. However, the decrease in price paid by buyers would be less than 18.4 cents because the demand for gasoline is not perfectly elastic, meaning consumers will not substantially increase their purchases in response to a small price decrease. Additionally, the supply of gasoline is not perfectly inelastic, allowing sellers to potentially increase their prices if they feel it is in their best interest. Therefore, the price decrease for buyers would be less than 18.4 cents, but it would still be a decrease.

Neither the Demand for Gasoline nor the Supply of Gasoline