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Who might potentially benefit from the tax

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Question: Due to concerns about climate change, many governments have considered imposing a carbon tax on carbon-intensive energy products like gasoline. Please use what we have learned about negative externalities and social costs to explain the potential impact of a carbon tax on the gasoline market. In particular, how would a carbon tax affect the quantity of gasoline demanded and the market equilibrium price of gasoline? Who might potentially benefit from the tax?

Reference no: EM133246657

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