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Not much explanation needed. HURRY PLEASE Test: Exam #2 Question 3 This Test: 74 pts possible Submit Consider the market for gasoline, illustrated in the

Not much explanation needed. HURRY PLEASE

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Test: Exam #2 Question 3 This Test: 74 pts possible Submit Consider the market for gasoline, illustrated in the figure to the right. Suppose the Next Question government adds a $0.75 per gallon excise tax on gasoline, which shifts the 5.50 S supply curve from S, to S2, as illustrated. 5.00- What is the tax incidence? 4.50- 4.00- Consumers pay $ of the tax and producers pay $ of the tax. (Enter your responses rounded to two decimal places.) When the demand for a product is more elastic than supply, consumers pay Price (dollars per gallon) of the tax on the product. 0.50- D 0.00- 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Quantity (billions of gallons)

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