Q1. The federal government decides that Australia should air pollution by reducing its use of petrol. The government imposes a $0.50 tax for each litre of petrol sold. a. Should the tax be imposed on producers and consumers? Explain carefully using a demand and supply diagram. b. If the demand for petrol were more elastic, would this tax be more effective or less effective in reducing the quantity of petrol consumed? Explain in words and using diagrammatic framework. Are consumers of petrol are hurt or help by this tax? Why? d. Are workers in the oil industry helped or hurt by this tax? Why? 2"