The table below shows the quantities of gas demanded and supplied at different prices in a...

  

Transcribed Image Text:

The table below shows the quantities of gas demanded and supplied at different prices in a city where a tax of $0.50 per gallon is collected from sellers of gas. The marginal external cost of gas is constant at $1 per gallon. Price ($/gallon) 2.00 2.50 3.00 3.50 Quantity (million gallons) Demanded Supplied 24 16 2252 20 16 12 4223 20 28 In the scenario above, the marginal benefit received by gas consumers is $ You are incorrect You are incorrect deadweight loss is $ X the gas producers' marginal private cost (including the tax) is $ X the marginal social cost is $ You are incorrect x million. You are incorrect X and the The table below shows the quantities of gas demanded and supplied at different prices in a city where a tax of $0.50 per gallon is collected from sellers of gas. The marginal external cost of gas is constant at $1 per gallon. Price ($/gallon) 2.00 2.50 3.00 3.50 Quantity (million gallons) Demanded Supplied 24 16 2252 20 16 12 4223 20 28 In the scenario above, the marginal benefit received by gas consumers is $ You are incorrect You are incorrect deadweight loss is $ X the gas producers' marginal private cost (including the tax) is $ X the marginal social cost is $ You are incorrect x million. You are incorrect X and the

Answer rating: 100% (QA)

Answer We know at equilibrium supply is equal to demand ... View the full answer