PART I: PARSIFAL SCHEDULING
The tax will result in the greatest amount of tax revenue if the price elasticity of demand for gasoline equals. a. 1.8. b. 1.4. c. 1.0. d. 0.5. ANS: d. 27. The government is thinking about increasing the gasoline tax to promote conservation. The tax will discourage the consumption of gasoline by the greatest extent when the price elasticity of ... ................
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