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Price of gasoline is $3.00 per gallon. Assume $0.60 tax has been imposed on Gasoline on sellers. a) Please discuss the incidence of tax on
Price of gasoline is $3.00 per gallon. Assume $0.60 tax has been imposed on Gasoline on sellers. a) Please discuss the incidence of tax on gasoline..... (2) b) Please draw a graph to explain your argument.... (4) (Hint: I expect to to see the tax revenue, who pays more tax and why, and if there is any dead weight loss calculate it.)
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