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o 6.00 5.50 ta Consider the market for gasoline illustrated in the figure, Suppose the market is perfectly competitive and initially in equilibrium. Now suppose

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o 6.00 5.50 ta Consider the market for gasoline illustrated in the figure, Suppose the market is perfectly competitive and initially in equilibrium. Now suppose the government imposes a gasoline tax of $2.00 to be paid for by producers. Show how the tax affects the market for gasoline. Use the line drawing tool to add either a new supply or demand curve. Properly label this line Carefully follow the instructions above, and only draw the required objects. 4507 4.00 AAA 350 Price of gasoline (dollars per gallon) 300 2.500 200 1504 100 050 0.00 10 20 30 40 50 60 70 80 90 100 to Quantity of gasoline

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