Unformatted text preview: __1,000 gallons __. d) What is the consumer surplus before the tax? ___$45,000 ___; after the tax? ___$20,000 ____. What is the producer surplus before the tax? __$45,000 __; after the tax? __$20,000 __. What is the dead weight loss associated with the tax? _____$10,000 _____. Note : This problem may also be constructed with algebraic expressions for demand and supply as follows: Demand : P = 60 – 10Q Supply : P = 10Q Supply + Tax: P = 20 + 10...
View
Full Document
 Fall '09
 BRESNOCK
 Producer Surplus, Supply And Demand

Click to edit the document details