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4. Tax on Gasoline Consider that the market demand and supply for gasoline is given by the following system, = 209 - 23p q' =

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4. Tax on Gasoline Consider that the market demand and supply for gasoline is given by the following system, = 209 - 23p q' = 83+ 19p (a) Find the market price and quantity. (b) Assume that the government plans to introduce a $1 tax per gallon. Find the equilibrium quantity after tax and the price that consumers pay and the price that firms receive. (c) Calculate the government revenues and the lost in consumer and producer surplus. (d) In light of your answer for part (c). What reasoning could the government have to regulate the market for gasoline

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