Use the figure below to answer the following question(s).
Figure 4-7

-Refer to Figure 4-7.The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline.A $.60-per-gallon excise tax on gasoline is levied,which shifts the supply curve from S₁ to S₂.Imposing the tax causes the equilibrium price of gasoline to increase from
A)$.80 to $1.40.
B)$.80 to $1.50.
C)$.90 to $1.50.
D)$.90 to $1.40.

Question

Use the figure below to answer the following question(s).
Figure 4-7
 
-Refer to Figure 4-7.The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline.A $.60-per-gallon excise tax on gasoline is levied,which shifts the supply curve from S₁ to S₂.Imposing the tax causes the equilibrium price of gasoline to increase from
A)$.80 to $1.40. 
B)$.80 to $1.50. 
C)$.90 to $1.50. 
D)$.90 to $1.40.

Quizplus · Accepted Answer

The Answer of Use the figure below to answer the following question(s).
Figure 4-7
 
-Refer to Figure 4-7.The supply curve S₁ and the demand curve D indicate initial conditions in the market for gasoline.A $.60-per-gallon excise tax on gasoline is levied,which shifts the supply curve from S₁ to S₂.Imposing the tax causes the equilibrium price of gasoline to increase from
A)$.80 to $1.40. 
B)$.80 to $1.50. 
C)$.90 to $1.50. 
D)$.90 to $1.40.

Use the Figure Below to Answer the Following Question(s)