1. 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.
   3. Have consumers been helped or hurt by the tax? Why? Does the graph above show how consumers have been hurt or helped?