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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
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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