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Consider the market for gasoline illustrated in the 6.00 figure. Suppose the market is perfectly 5.50- competitive and initially in equilibrium 5 00- Now suppose

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Consider the market for gasoline illustrated in the 6.00 figure. Suppose the market is perfectly 5.50- competitive and initially in equilibrium 5 00- Now suppose the government imposes a gasoline 4.50- tax of 4 00 $2.00 to be paid for by producers. 3.50 Show how the tax affects the market for gasoline Price of gasoline (dollars per gallon) 3.00 2.50 Use the line drawing tool to add either a new 2.00 supply or demand curve. Properly label this line. 1.50 Carefully follow the instructions above, and only 1.00 draw the required object. 0.50 0.00 0 10 20 30 40 50 60 70 80 90 100 1 Quantity of gasoline

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