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Suppose the market for gas was perfectly completive and in equilibrium.Also suppose the Canadian government implements a carbon tax of $1 per litre of gas,

Suppose the market for gas was perfectly completive and in equilibrium.Also suppose the Canadian government implements a carbon tax of $1 per litre of gas, and the market for gas sees the per capita quantity sold fall from 4 to 2 Litres per day, as represented in the graph below

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