What effect would an excise tax on gasoline have on the market for gasoline?

Question

Quizplus · Accepted Answer

An excise tax on gasoline would increase the cost of production for sellers, leading to a decrease in the after-tax price received by the seller. As a result, the quantity supplied would decrease, and the after-tax price paid by buyers would increase. This would lead to a decrease in the quantity demanded. The demand curve for gasoline would not shift due to the tax. Therefore, choice D is the best answer as it accurately reflects the effect of an excise tax on gasoline.

What Effect Would an Excise Tax on Gasoline Have on the Market