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Home Q & A Board Other Fields Homework Help Business Economics
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tlc_71111 tlc_71111
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4 years 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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InMicro

InMicro


Edition: 1st
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mnp2357mnp2357
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4 years ago
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tlc_71111 Author
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4 years ago
Smart ... Thanks!
acaruso
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Yesterday
this is exactly what I needed
veronee_madison
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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