1. (3 points). In spring of 2023, due to international conflict, gas prices in the US hit historic highs without account

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1 3 Points In Spring Of 2023 Due To International Conflict Gas Prices In The Us Hit Historic Highs Without Account 1 (71.46 KiB) Viewed 34 times

1. (3 points). In spring of 2023, due to international conflict, gas prices in the US hit historic highs without accounting for inflation, reaching the cost of $4.18 per gallon. To remedy this, some members of Congress recommended removing the federal $0.18 gas tax for one year. Currently, this gas tax is applied to gasoline suppliers, as seen in the graph below. Using this graph, which represents the US gas market for one year with the federal gas tax, answer the following questions: S + tax S $4.18 $4.02 $4.00 11 D 110 120 300 Billions of gallons of gas sold annually a.) With the gas tax, what is the price consumers pay (Pc)? b.) With the gas tax, what is the price suppliers receive (Ps)? c.) If the gas tax is removed, what is the new price of gasoline? d.) How much federal revenue is lost if the gas tax is removed? e.) Who is paying more for this tax, consumers or suppliers, and why?