Demand and supply curves for gasoline in massachusetts

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The weekly demand and supply curves for gasoline in Massachusetts are as follows:

Qd= 10-5p

Qs= 10p-5

The government of Mass. decides to impose a tax of $0.75 per gallon on gasoline suppliers in order to fund highway maintenance.

a. Calculate how much revenue is collected by Mass. government? Who bears the greater burden of this tax, consumers or producers?

Reference no: EM13743418

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