Answer:
According to the graph, how much is the gasoline tax and how much does the equilibrium price increase as a result of the tax?
-The tax is $0.68 per gallon, which causes an increase in equilibrium price of $0.40
**Consumers will now pay $2.00 a gallon for gas that was $1.60 before the tax and the quantity will fall from 100 million gallons of gasoline down to 80 million gallons of gasoline. However, the price received by the producer will be $0.28 less than it was prior to the tax.