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Suppose the German government increases the excise tax on gasoline by $0.2. The equilibrium price was $1.00 and the equilibrium quantity sold was 5 mio.

Suppose the German government increases the excise tax on gasoline by $0.2. The equilibrium price was $1.00 and the equilibrium quantity sold was 5 mio. gallons before the taxes were increased. The new equilibrium price is $1.1 and the new equilibrium quantity is 4 mio. gallons.

Calculate how much the consumers with lose

Calculate how much the producers will lose:

Calculate the tax income for the government

Calculate the deadweight loss:

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