Use the Following to Answer Questions

question 220

Multiple Choice

Use the following to answer questions:
Figure: Demand Tax
-(Figure: Demand Tax) The figure illustrates a market for gasoline with a $1 tax imposed on the buyers. What price do sellers receive for a gallon of gasoline in this market?

• A) $3.50
• B) $3
• C) $2.50
• D) between $2.50 and $3.50, depending on the elasticity of supply

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Definitions:

Decimal

A number expressed using a decimal system, which includes a point to separate the integer part from the fractional part (e.g., 3.14).

Consecutive Odd Integers

Integers that follow one after another in order and are odd, each differing by two from the next (e.g., 1, 3, 5, ...).

Sum

The result of adding two or more numbers or quantities together.

Algebraic Model

A mathematical model that uses algebraic expressions to represent real-world situations.