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Please help Suppose the market demandand-supply curves for the gasoline market are as given below. In each case, quantity refers to millions of litres of
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Suppose the market demandand-supply curves for the gasoline market are as given below. In each case, quantity refers to millions of litres of gasoline per month; price is the price per litre {in cents). Demand: P = 350 24oD Supply: P 2140 + 403 Given these equations, the equilibrium price is 17'0 cents and the equilibrium quantity is ?.5 million litres. Compute the total revenue raised by the gasoline tax. What share ofthis tax revenue is "paid" by consumers, and what share is "paid" by producers? (Hint: if the consumer price were unchanged from the pretax equilibrium, we would say that consumers pay none of the tax.) When the government imposes a tax of 42 cents per litre, Q'nm 6 million litres, the price consumers now pay is 206 cents and the price producers now receive ls164 cents. The total revenue raised by the gasoline tax is $ 2.52 million. (Enter your response rounded to two decimal places.) The percentage share of this tax revenue that is \"paid" by consumers is -%_ (Enter your response rounded to one decimal place. ,1Step by Step Solution
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