Question: The demand for gasoline is P 5 0 002Q
The demand for gasoline is P = 5 - 0.002Q and the supply is P = 0.2 + 0.004Q, where P is in dollars and Q is in gallons. If a tax of $1/ gal is placed on gasoline, what is the incidence of the tax? What is the lost consumer surplus? What is the lost producer surplus?
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