Should the government wish to lower the price of gasoline to the consumer, one approach might be

Question

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Reducing the gasoline excise tax would decrease the cost of production for gasoline, shifting the supply curve to the right and lowering the equilibrium price for consumers. Option A, raising the gasoline excise tax, would increase the cost of production and shift the supply curve to the left, resulting in higher prices for consumers. Option C, shifting the supply curve to the left, would also result in higher prices for consumers. Option D, lowering taxes on automobiles, would not directly impact the price of gasoline and may have a minimal effect on demand.

Should the Government Wish to Lower the Price of Gasoline