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Assume that supply curve for litres of petrol in the weekly retail market for petrol in Australia in 2022 is perfectly elastic and that demand

Assume that supply curve for litres of petrol in the weekly retail market for petrol in Australia in 2022 is perfectly elastic and that demand is downward sloping.

Explain and show by drawing a carefully labelled diagram how an excise tax of $0.44 per litre levied on petrol sellers could achieve the same result in b and also reduce the amount of petrol bought and sold to the socially efficient level.

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