A tax on gasoline is proposed in order to raise money for the pollution-control activities of several public agencies. The tax will be 10¢ per gallon, and last year 10.3 million gallons of gasoline were used by motorists (this is strictly an illustrative number). Does this mean that we can anticipate $1,030,000 in revenues from this tax? Explain and use a graph to answer this question.
A tax on gasoline is proposed in order to raise money for the pollution-control activities of several public agencies. The tax will be 10¢ per gallon, and last year 10.3 million gallons of gasoline were used by motorists (this is strictly an illustrative number). Does this mean that we can anticipate $1,030,000 in revenues from this tax? Explain and use a graph to answer this question.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter22: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 4CQ
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Question
![A tax on gasoline is proposed in order to raise money for the pollution-control activities of several
public agencies. The tax will be 10¢ per gallon, and last year 10.3 million gallons of gasoline were used
by motorists (this is strictly an illustrative number). Does this mean that we can anticipate $1,030,000
in revenues from this tax? Explain and use a graph to answer this question.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F466995bd-1e6f-4d1b-8c10-d677792faac0%2Fb9ae1b73-b28b-42f8-9078-6324d5d04f9f%2Fno6551p_processed.png&w=3840&q=75)
Transcribed Image Text:A tax on gasoline is proposed in order to raise money for the pollution-control activities of several
public agencies. The tax will be 10¢ per gallon, and last year 10.3 million gallons of gasoline were used
by motorists (this is strictly an illustrative number). Does this mean that we can anticipate $1,030,000
in revenues from this tax? Explain and use a graph to answer this question.
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