Suppose the market demand function for ice cream is Qd = 10 - 2 P and the market supply function for ice cream is Qs = 4 P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.46 tax on each gallon of ice cream. The change in producer surplus due to the tax is: (Round to the nearest ten thousand and answer in millions. ex. 0.94 = 940,000)

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Initial equilibrium 10 2P 4P 2 P 2 and Q 6 After tax New supply ... View the full answer