Asked by Caleb Rodriguez on Jul 08, 2024
Verified
When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve for gasoline shifts upward, but by less than $1.00.
Supply Curve
A graph showing the relationship between the price of a good and the quantity of the good that producers are willing to supply at that price.
Gasoline
A refined petroleum product used as fuel in internal combustion engines.
- Determine the fiscal outcomes of taxing goods on the aspects of demand and supply.
Verified Answer
BÇ
Berfin ÇAKMAKJul 15, 2024
Final Answer :
False
Explanation :
When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve shifts vertically upward by exactly $1.00, reflecting the full amount of the tax.
Learning Objectives
- Determine the fiscal outcomes of taxing goods on the aspects of demand and supply.