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Suppose the government increases the excise tax on gas by $0.2. The eqilibrium price was $1.00 and the equilibrium quanitity sold was 5 millions gallons
Suppose the government increases the excise tax on gas by $0.2. The eqilibrium price was $1.00 and the equilibrium quanitity sold was 5 millions gallons before taxes increased. The new equilibrium price is $1.1 and the new equilibrium quanitity is 4 million gallons. Calculate how much consumers will lose
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