Consider the market for gasoline. In the initial equilibrium

Consider the market for gasoline. In the initial equilibrium, the price is $2.00 per gallon and the… Show more Consider the market for gasoline. In the initial equilibrium, the price is $2.00 per gallon and the quantity is 100 million gallons. The price elasticity of demand is 0.70 and the price elasticity of supply is 1.0. Suppose a carbon tax shifts the supply curve upward by $0.14 and to the left by 17%. Please answer with step by step solution. • Show less

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