In 1993,the government increased the tax on gasoline producers from 14.1 cents per gallon to 18.4 cents per gallon.Our model of supply and demand predicts that

Question

Quizplus · Accepted Answer

According to the model of supply and demand, an increase in a tax on gasoline producers would lead to an increase in the cost of production for gasoline, which in turn would lead to a decrease in the supply of gasoline. Therefore, the correct choice is D: the supply for gasoline decreased.

In 1993,the Government Increased the Tax on Gasoline Producers from 14.1