Question: Suppose the market demand function for ice cream is Q = 10 - 2 and the market supply function for ice cream is Qs =

Suppose the market demand function for ice cream is Q = 10 - 2 and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The change in producer surplus due to the tax is: $1.89 million. $7.11 million. $3.56 million. O $944,444

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