If the Government Removed the Excise Tax on Gasoline, Which

question 134

Essay

If the government removed the excise tax on gasoline, which of the following would not occur?
A.Consumer surplus would increase.
B.Producer surplus would increase.
C.Producer surplus would decrease.
D.Total surplus would increase.

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Definitions:

Capsules

A dosage form of medication that is encased in a small, typically cylindrical container made of gelatin or a similar substance, designed to be swallowed.

Eliminate

To completely remove or get rid of something.

Rosenthal Effect

Also known as the Pygmalion effect, the phenomenon by which higher expectations lead to an increase in performance.

Masked Design

A research strategy where the participants do not know which treatment or control condition they are receiving to prevent bias.