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Figure: The Gasoline Market Use the following to answer questions: Figure: The Gasoline Market   -(Figure: The Gasoline Market)  Look at the 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) Look at the 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?


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