Suppose that the pre tax price of gasoline is 1 per gallon


Suppose that the pre tax price of gasoline is $1 per gallon. A tax of $0.50 is imposed and is paid by consumers to the government. What must the gross price of gasoline be after the tax so that the consumer tax burden is equal to the producer tax burden?

a) $0.50

b) $0.75

c) $1.00

d) $1.25

 

e) none of the above

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Business Economics: Suppose that the pre tax price of gasoline is 1 per gallon
Reference No:- TGS0987837

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