Question

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.

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.