Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be paid by energy suppliers. Assuming demand for gasoline is more inelastic than supply of gasoline, then the tax revenue economically generated by this tax comes from? a. The tax payment by the energy suppliers as they are ordered by law to pay the tax. b. The price disruption caused by the tax and the revenue will economically come from suppliers more so than consumers. c. The price disruption caused by the tax and the revenue will economically come from consumers more so than firms. d. The price disruption caused by the tax and the revenue will economically come from consumers and firms in equal amounts.

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Q: Suppose legislation is passed stating that a per unit tax of $.50 per gallon of gasoline must be…

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