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4. The market for diesel fuel is shown below, both before and after a tax is put in place by the government. Using the graph,
4. The market for diesel fuel is shown below, both before and after a tax is put in place by the government. Using the graph, answer the following: What is the price of diesel fuel before the tax, & how much diesel fuel is sold? What is the amount of the tax per gallon, and what is the total amount of money that the tax raises for the government? What is the deadweight loss from the tax? What is the tax incidence of this tax between consumers and producers?
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