If gasoline sales were taxed the price of gasoline would rise-09154
If gasoline sales were taxed, the price of gasoline would rise. Consequently, the quantity demanded of gasoline would decline. As a result of the higher gasoline prices, the demand for fuel-efficient automobiles would increase. This statement is
This multiple choice question (MCQ) is related to the book/course
vu eco402 Microeconomics.
It can also be found in
vu eco402 Final Term - Quiz No.7.
If gasoline sales were taxed, the price of gasoline would rise. Consequently, the quantity demanded of gasoline would decline. As a result of the higher gasoline prices, the demand for fuel-efficient automobiles would increase. This statement is
essentially correct.
incorrect; the high gasoline prices would cause the demand for gasoline, not the quantity demanded, to fall.
incorrect; the statement confuses a change in demand with a shift in supply.
incorrect; demand and quantity demanded are confused for both gasoline and fuel efficient cars.
