Recently in the Minnesota Legislature, there has been discussion about increasing the tax you pay on every gallon of gas you buy. The idea is to raise money for road construction and repair throughout the state. A gas tax will have an impact on the markets.

1.Looking at the gasoline market, will an increase in the gas tax shift the demand curve, the supply curve, both or neither? Explain the shift in detail making sure to explain which determinant caused the change. (BTW "both" and "neither" are not the correct choices.)

2.Who will benefit from the shift? Explain in detail.

3.Who will be hurt by the shift? Explain in detail.