How is the market for gasoline affected if the excise tax on gasoline is reduced?

Name: How is the market for gasoline affected if the excise tax on gasoline is reduced?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Reducing the excise tax on gasoline reduces the cost of production for gasoline suppliers. This, in turn, incentivizes them to increase their supply of gasoline in the market, resulting in an increase in the supply of gasoline. Therefore, the market for gasoline is affected by an increase in supply, hence, the answer is B.

How Is the Market for Gasoline Affected If the Excise