(Answered) Suppose the market demand function for ice cream

Economics

Suppose the market demand function for ice cream is Q^d = 10 - 2P and the market supply function for ice cream is Q^s = 4P - 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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Business Economics, Economics

Category:- Business Economics
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