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  • All of he statements below are correct, except The demand is now lower because of the higher price ??? ??? ??? Suppose the price of gasoline is $3.50 per gallon, the quantity demanded is 150 billion gal/year, the price elasticity of demand for gasoline is -0.06, and the government decides to increase the excise tax on gasoline by $1.00 per gallon, which increases the market price of gasoline by $0
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