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# Suppose the price of gasoline is $3.50 per gallon, the quantity of gasoline demanded is 150 billion ... wrote... Posts: 387 6 days ago 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

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Edition: 1st
Authors:
Do What Makes You Come Alive
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Posts: 337
6 days ago

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