Higher taxes on gasoline result in:

Question

Quizplus · Accepted Answer

Higher taxes on gasoline do not affect the demand for gasoline, but they do affect the cost of producing gasoline, which leads to a decrease in the supply of gasoline. This is represented by a shift in the supply curve to the left. However, if the question is specifically asking about the effect on the supply curve, then the correct answer is a movement along the supply curve, as the quantity supplied would decrease as the price of gasoline (including the taxes) increases.

Higher Taxes on Gasoline Result In