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2. Congress and the President decide that the United States should reduce air pollution by reducing its use of gasoline. They impose a $0.80 tax

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2. Congress and the President decide that the United States should reduce air pollution by reducing its use of gasoline. They impose a $0.80 tax on each gallon of gas sold. Using a supply and demand graph, show the following. The tax needs to be shown using a shift of the supply curve. (25 points) 1. Who pay the burden of the tax? Why? Explain with words 2. Draw a graph described in part a. Label the graph including the tax burden, the consumer and producer surplus after the tax and the area of tax revenue

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