Draw a supply and demand graph for gasoline. Consider whether
supply or demand for gasoline is more inelastic, and draw the
curves accordingly. Label the original equilibrium price $3. In
California, the federal, state and local excise and sales taxes
total about 77 cents per gallon. Assuming the government taxes the
seller directly, draw the impact of this tax on the supply and
demand diagram. Label the new price the consumer pays (Pc), the
price the seller receives after taxes...