19. Suppose the demand for gasoline at Kingston Convenience Mart i q = 1000 - 400p, where q is quantity (gallons/day) and p is price ($/gallon). Supply is q = 600p. Imagine that a 50% sales tax is imposed on gasoline. How large is the daily loss of consumer surplus due to the sales tax?

19. Suppose the demand for gasoline at Kingston Convenience Mart i q = 1000 - 400p, where q is quantity (gallons/day) and p is price ($/gallon). Supply is q = 600p. Imagine that a 50% sales tax is imposed on gasoline. How large is the daily loss of consumer surplus due to the sales tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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