Recall the Application About How a Simultaneous Increase in the Gasoline

question 50

Multiple Choice

Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the income tax affect gasoline consumption to answer the following question(s) . This Application discusses a gasoline tax increase which is combined with a cut in income taxes to ensure that total tax revenue does not change.
-Recall the Application.How would a simultaneous increase in the gasoline tax a decrease in the income tax effect gasoline consumption?

• A) Consumption will decrease.
• B) Consumption will stay the same.
• C) Consumption will increase.
• D) None of the above are correct.

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