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Title: Suppose the price of gasoline is $3.50 per gallon, the quantity of gasoline demanded is 150 billion ...
Post by: tlc_71111 on Oct 9, 2019

Suppose the price of gasoline is $3.50 per gallon, the quantity of gasoline demanded is 150 billion gallons per year, the price elasticity of demand for gasoline is -0.06, and the federal government decides to increase the excise tax on gasoline by $1.00 per gallon, which increases the price of gasoline by $0.75 per gallon. How much revenue does the federal government receive from the tax?



$95.44 billion



$111.20 billion



$148.27 billion



$161.61 billion



Title: Suppose the price of gasoline is $3.50 per gallon, the quantity of gasoline demanded is 150 billion ...
Post by: mnp2357 on Oct 9, 2019
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