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A student makes the following statement: If the federal government raises the sales tax on gasoline by $0.25, then the price of gasoline will rise

A student makes the following statement: "If the federal government raises the sales tax on gasoline by $0.25, then the price of gasoline will rise by $0.25. Consumers can't get by without gasoline, so they have to pay the whole amount of any increase in the sales tax." Under what circumstances will the student's statement be true? Illustrate your answer with a graph of the market for gasoline. (4 marks)

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