A significant state tax increase on gasoline would have what likely effect on the price of delivery services, such as product shipping?

A) The price of the delivery service would likely decrease to stave off inflation due to the tax increase.

B) The price of the delivery service would likely remain the same, since
gasoline is an inelastic product.

C) The price for the delivery service would remain the same, as it is against federal policy to pass along state tax increases to consumers.

D) The price of the delivery service would likely increase to help shipping companies account for the increase in the cost of providing the service.

Taxes on materials often increase the cost of providing a good or service increases in attacks of gasoline and would have a direct impact on the cost of doing business for delivery service if possible a delivery company will likely pass along to consumers and increase in shopping

Answer Link

jayilych4real jayilych4real · Answer 2 · 2021-11-23T12:14:35+01:00

A significant state tax increase on gasoline would have the likely effect on the price of delivery services, such as product shipping because:

D) The price of the delivery service would likely increase to help shipping companies account for the increase in the cost of providing the service.

According to the given question, we are asked to show how a significant state tax increase on gasoline would have the likely effect on the price of delivery services, such as product shipping,

As a result of this, we can see that when taxes are paid on goods which are used for the manufacturing process, there is a marked increase in cost of production and this would affect the cost of business.

Therefore, the correct answer is option D