Suppose the Government Increases the Tax on Gasoline in Order

question 73

Multiple Choice

Suppose the government increases the tax on gasoline in order to raise revenue. Since raising the gasoline tax would increase the price of gasoline, the government must be assuming that the:

• A) demand for gasoline is price elastic
• B) demand for gasoline is price inelastic
• C) demand for gasoline is price unit elastic
• D) tax on gasoline will not affect the consumption of gasoline

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Definitions:

Oxygenated Blood

Blood that has been enriched with oxygen from the lungs and is being transported by the arteries to the rest of the body.

Left Atrium

The left atrium is one of the four chambers of the heart, receiving oxygen-rich blood from the lungs and pumping it into the left ventricle.

Pulmonary Arteries

Blood vessels that carry deoxygenated blood from the heart to the lungs for gas exchange.

Diastole

Relaxation period of a heart chamber during the cardiac cycle.