5. Decades ago, Washington D.C., a fairly small city, wanted to raise revenue by increasing the gas tax. Washington D.C.

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5 Decades Ago Washington D C A Fairly Small City Wanted To Raise Revenue By Increasing The Gas Tax Washington D C 1 (32.33 KiB) Viewed 37 times

5. Decades ago, Washington D.C., a fairly small city, wanted to raise revenue by increasing the gas tax. Washington D.C. shares borders with Maryland and Virginia, and it's very easy to cross the borders between these states. How elastic is the demand for gasoline sold at stations within Washington D.C.? In other words, if the price of gas in DC rises, but the price in Maryland and Virginia stays the same, will the gasoline sales at DC stations fall a little or will they fall a lot? a. Elastic - gasoline sales would fall a lot b. Inelastic – gasoline sales would fall a little