The demand for gasoline is P= 6-0.002 Q and the supply is P= 0.6+0.004 Q, where P is in dollars and Q is in gallons. Instructions: Round your answer to the nearest penny (2 decimal places). If a tax of $0.6/gallon is placed on petrol, what is the incidence of the tax? Tax incidence to the consumer: $ Tax incidence to the supplier: $ Instructions: Round your answers to the nearest whole number. What is the lost consumer surplus? $ What is the lost producer surplus? $

The demand for gasoline is P= 6-0.002 Q and the supply is P= 0.6+0.004 Q, where P is in dollars and Q is in gallons. Instructions: Round your answer to the nearest penny (2 decimal places). If a tax of $0.6/gallon is placed on petrol, what is the incidence of the tax? Tax incidence to the consumer: $ Tax incidence to the supplier: $ Instructions: Round your answers to the nearest whole number. What is the lost consumer surplus? $ What is the lost producer surplus? $

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 4QP

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