csps2 - ______________. How much revenue will the sales tax...

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20 50 Additional Problem #2 : Consumer and Producer Surplus The graph below shows the market for anti-freeze. The government imposes a sales tax on sellers of T. $/gallon 60 S + T S 40 30 10 D Quantity 0 1 2 3 4 5 6 (thousands of gallons) a) What is the equilibrium price/gallon without the tax? ______________; the equilibrium quantity without the tax? __________________. b) What is the tax per gallon?
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Unformatted text preview: ______________. How much revenue will the sales tax raise? ______________. c) The tax decreases consumption by? ____________. d) What is the consumer surplus before the tax? _________________; after the tax? _______________. What is the producer surplus before the tax? ____________; after the tax? _______________. What is the dead weight loss associated with the tax? ____________________....
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