Raising gas taxes to finance infrastructure is "politically tricky" because
a. the demand fo...
Business, 30.11.2019 02:31 mixonhomeschool
Raising gas taxes to finance infrastructure is "politically tricky" because
a. the demand for gasoline is highly inelastic and a rise in the gas tax paid primarily by consumers can jeopardize the re-election of politicians.
b. the demand for gasoline is highly inelastic and a rise in the gas tax substantially decreases the quantity of gas bought so other taxes will have to rise at the same time to finance infrastructure.
c. the demand for gasoline is highly elastic and a rise in the gas tax paid primarily by consumers can jeopardize the re-election of politicians.
d. a rise in the gas tax makes the supply of gasoline more elastic so most of the rise in the gas tax is paid primarily by consumers, which jeopardizes the re-election of politicians.
Answers: 3
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