Suppose congress decides to reduce our dependence on foreign oil by imposing a $.50 tax on each gallon of gasoline at the pump.

Suppose congress decides to reduce our dependence on foreign oil by imposing a $.50 tax on each gallon of gasoline at the pump. Briefly explain what kind of supply and demand elasticities for gasoline must be present in the U.S. market, in order for this policy to be effective. Indicate in your explanation who will bear most of the tax burden

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