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Consider the market for gasoline illustrated in the gure to the nght. Suppose the market is perfectly competitive and initially in equilibrium, Now suppose the

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Consider the market for gasoline illustrated in the gure to the nght. Suppose the market is perfectly competitive and initially in equilibrium, Now suppose the government imposes a gasoline tax of $1.50 to be paid for by producers. The effect of this tax is illustrated in the gure to the right. Who bears the burden of the tax? Consumers pay 35 of the $1.50tax (enter a numeric response usrng a real number rounded to two decrmal places) Prioa of gasolina (dollars oar gallon 10 20 30 4D 50 60 70 80 90100 Quantity of gasoline

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