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Question 227

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Use the following to answer question: Use the following to answer question: -(Figure: The Gasoline Market) Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline supplied by producers,shifting the supply curve upward.What is the tax rate? A) $1.75 per gallon B) $1 per gallon C) $2.50 D) $0.50
-(Figure: The Gasoline Market) Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline supplied by producers,shifting the supply curve upward.What is the tax rate?


A) $1.75 per gallon
B) $1 per gallon
C) $2.50
D) $0.50

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