In Figure, a negative externality was corrected with a $1.00 per gallon tax on gasoline producers. Draw

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In Figure, a negative externality was corrected with a $1.00 per gallon tax on gasoline producers. Draw a diagram to show that the total price paid by consumers, the total price received by firms, and the equilibrium quantity would have been exactly the same if the same tax had been imposed on gasoline consumers instead ofproducers.

In Figure, a negative externality was corrected with a $1.00
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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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