Missouri is often noted for having the lowest gasoline tax (a type of excise tax) in...
Missouri is often noted for having the lowest gasoline tax (a type of excise tax) in the nation. Graphically show using supply and demand analysis the impact of raising this tax to society
Homework Answers
Raising taxes on gasoline pushes the prices of petrol up and also makes combustible engines look more costly as the higher prices is passed onto consumers due to tax burden which causes negative implications and lower aggregate demand.
The excess burden of taxes causes deadweight losses to consumer as prices first rise and then fall subsequently when supply too falls and thus output quantity of gasoline also falls with falling prices.
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