Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon. What most likely happens next?
a. Service station operators pass along the tax to you, adding the 10 cents to the price of a gallon of gas.
b. Service station operators grumble, but pay the tax without passing the cost along to you.
c. Service station operators pass along as much of the tax to you as they can, probably about 6 cents/gallon.
d. None of these choices.
c
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Compare and contrast the suitability of different market structure for fostering technological advance
What will be an ideal response?
Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent:
Refer to the data above. If a check for $20,000 is drawn and cleared against this bank, it will then have excess reserves of:
A. $15,000
B. $20,000
C. $25,000
D. $30,000