If buyers were required to pay the federal excise tax on gasoline directly to the government,the demand curve for gasoline would shift up.

Question

Quizplus · Accepted Answer

The demand curve for gasoline would not shift up if buyers were required to pay the federal excise tax on gasoline directly to the government. The demand curve would remain the same because the tax is not affecting the quantity demanded of gasoline, but rather the price paid by buyers. The price that buyers pay would simply increase to reflect the tax, but the quantity demanded would remain the same.

If Buyers Were Required to Pay the Federal Excise Tax