Multiple Choice
Neither the demand nor the supply of gasoline is perfectly elastic or inelastic.When the government increases the federal tax on gasoline,the effect on buyers is that the price they pay
A) rises.
B) falls.
C) does not change.
D) rises if the demand is inelastic and falls if the demand is elastic.
E) rises if the supply is inelastic and falls if the supply is elastic.
Correct Answer:
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