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2 2. Suppose that the government imposes a tax of 25 cents per liter of gas. Explain how this will change the equilibrium price and

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2 2. Suppose that the government imposes a tax of 25 cents per liter of gas. Explain how this will change the equilibrium price and quantity of gas. Assume that the price of gas before this tax is $1:50. Will the new equilibrium price be $1.75 or less? How will the price elasticity of demand explain how much the price will increase? Why

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