If the government were to increase taxes on gasoline what


If the government were to increase taxes on gasoline, what will happen to the total government revenue? Why? What are you assuming about the elasticity of the demand curve of gasoline? What is the formula for elasticity? Would the government make more tax revenues taxing airline tickets instead? Why or why not? What assumptions are you making about the elasticity of airline tickets? Make sure to graph the demand curve for both gasoline and airlines.

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Operation Management: If the government were to increase taxes on gasoline what
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