Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon.

What most likely happens next?

a. Service station operators grumble, but pay the tax without passing the cost along to you.

b. Service station operators pass along as much of the tax to you as they can, probably about 6 cents/gallon.

c. None of these choices.

d. Service station operators pass along the tax to you, adding the 10 cents to the price of a gallon of gas.

Question

Ferguson

Business

27 February, 12:06

Imagine that the state legislature raises the tax on gasoline by 10 cents/gallon.

What most likely happens next?

a. Service station operators grumble, but pay the tax without passing the cost along to you.

b. Service station operators pass along as much of the tax to you as they can, probably about 6 cents/gallon.

c. None of these choices.

d. Service station operators pass along the tax to you, adding the 10 cents to the price of a gallon of gas.

+3

Answers (1)

Know the Answer?

Moshe · Answer 1

Answer: d

Explanation: The service station will most likely pass along the tax to you adding the 10cents / gallon.

This is because the service station was established mainly for profit and will have to work hard to reduce or eliminate any extra cost t it self.