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Duval county recently passed 6 cents per gallon increase in the Gasoline tax. Data tells us that the short run (1 year or less) prices

  1. Duval county recently passed 6 cents per gallon increase in the Gasoline tax. Data tells us that the short run (1 year or less) prices elasticity of demand for gasoline is approximately -.26. Given this information, discuss the likely impacts of this new higher tax on the market for gasoline in Duval County specifically in terms of economic efficiency (market efficiency) and equity. Be specific in your explanation.

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