Q2 [13 marks] Consider the market for petrol in a hypothetical country B. a) In the space provided below, draw a model of the market for petrol, paying particular attention to the demand curve and identifying equilibrium price and quantity. Petrol is currently selling for $1.00 per litre. [2 marks] b) The government is considering implementing a $0.50 tax on petrol. Show how this would affect the market for petrol, and how this would affect consumers, producers, government and society. [5 marks] c) How will the burden of the tax fall upon consumers and producers, and why? [3 marks] d) If this tax is a corrective Pigouvian tax, is this situation an example of market failure or a type of government failure? Explain fully. [3 marks]