Author Question: A sales tax is imposed on the sellers of gasoline. This tax shifts A) the supply of gasoline ... (Read 174 times)

plus1 · **on:** Jun 29, 2018

A sales tax is imposed on the sellers of gasoline. This tax shifts

A) the supply of gasoline curve leftward.
B) the supply of gasoline curve rightward.
C) the demand for gasoline curve leftward.
D) both the supply curve of gasoline and demand curve for gasoline leftward.

Question 2

A product is likely to have a price elasticity of demand that exceeds 1 when

A) its price falls.
B) the percentage of income spent on it decreases.
C) it is a necessity.
D) it has close substitutes.