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) Quantity (million gallons) Demanded Supplied 2.00 24 16 2.50 20 20 3.00 16 24 3.50 12 28 Question 10 Homework Answered Fill in the Blanks Type your answers in all of the blanks and submit In the scenario above, the marginal benefit received by gas consumers is $ 2.50 the gas producers marginal private cost (including the tax) is $ 2.50 the marginal social cost is $ 3. and the deadweight loss is $ million.
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) Quantity (million gallons) Demanded Supplied 2.00 24 16 2.50 20 20 3.00 16 24 3.50 12 28 Question 10 Homework Answered Fill in the Blanks Type your answers in all of the blanks and submit In the scenario above, the marginal benefit received by gas consumers is $ 2.50 the gas producers marginal private cost (including the tax) is $ 2.50 the marginal social cost is $ 3. and the deadweight loss is $ million.
Chapter8: Market Failure
Section: Chapter Questions
Problem 2P: Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and...
Related questions
Question
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
(S/gallon)
Quantity
(million gallons)
Demanded Supplied
2.00
24
16
2.50
20
20
3.00
16
24
3.50
12
28
Question 10
Homework Answered
Fill in the Blanks
Type your answers in all of the blanks and submit
In the scenario above, the marginal benefit received by gas consumers is $
the gas producers
2.50
marginal private cost (including the tax) is $
2.50
the marginal social cost is $3
and the deadweight loss is $
million.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
