Asked by
Jaelyn Williams
on Nov 05, 2024
Verified
Since the demand for gasoline is relatively inelastic, a gas tax is largely borne by consumers.
Gas Tax
A tax imposed on the sale of gasoline, typically used to fund transportation and infrastructure projects.
Inelastic
Describes demand that is relatively unresponsive to price changes, meaning the percentage change in quantity demanded is smaller than that in price.
Consumers
Individuals or organizations that use economic goods and services generated within the economy, directly affecting demand trends and market dynamics.
- Familiarize oneself with the theory of tax incidence and the division of tax loads between consumers and producers.
Verified Answer
MH
Learning Objectives
- Familiarize oneself with the theory of tax incidence and the division of tax loads between consumers and producers.