In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline_{--------------------} and the equilibrium price of gasoline .

Question

Quizplus · Accepted Answer

Raising taxes on gasoline increases the cost of supplying it, which typically leads to a decrease in the equilibrium quantity and an increase in the equilibrium price.

In Great Britain, Raising Taxes on Gasoline Has Increased the Costs