Determine what is the new price and qauntity of gass

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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 $0.34 and to the left by 17 percent.

what is the new price and qauntity of gass

Reference no: EM13236710

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