Assume that the government increases the unit excise tax on gasoline suppliers and also that people commute longer distances to work as more houses are built in city suburbs. As a result the equilibrium price and quantity of gasoline will most likely change in which of the following ways? Price Quantitya. Increase Increaseb. Decrease Indeterminatec. Indeterminate Increased. Increase Indeterminatee. Indeterminate Decrease

Increase , indeterminate ( D )

Explanation:

If the government increases the unit excise tax on gasoline suppliers the supplier will most definitely increase the price of he gasoline in the open market . according to the law of economics the increase in price of commodities leads to a significant decrease in demand for the commodity.

but with a inelastic/essential commodity an increase in the price of the commodity the change in demand is not significant hence it is indeterminate.  The gasoline is an essential commodity in this question because the people need it to commute longer distances to work regardless of the price changes . the change in the quantity is indeterminate because the people might continue buying the same quantity, reduce slightly the quantity been purchased or increase the quantity. on the other hand the supplier might decide to either maintain the same supply, or reduce the amount of supply or even increase the supply .

answer; /// the use of a bank credit card to make purchase;