If the Government Wants to Reduce the Burning of Fossil

question 196

Multiple Choice

If the government wants to reduce the burning of fossil fuels,it should impose a tax on

• A)buyers of gasoline.
• B)sellers of gasoline.
• C)either buyers or sellers of gasoline.
• D)whichever side of the market is less elastic.

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Definitions:

Economic Factors

Variables and conditions affecting an economy’s performance, such as inflation rates, interest rates, employment levels, and gross domestic product (GDP).

Demand Uncertainty

The unpredictability of customer demand, making it difficult for businesses to accurately forecast sales.

Price Uncertainty

Refers to the fluctuation in the prices of goods or services in a market, which can be due to various factors including demand, supply, and external economic conditions.

Warehousing Space

The area allocated for the storage of goods in a building or designated area until they are ready to be shipped or sold.