Daily demand for gasoline at Billy-Bob's Mobile Station is described by Q=776-200p, where Q are gallons of gasoline sold, and p is the price in DOLLARS

Marketing Jan 12, 2021

Daily demand for gasoline at Billy-Bob's Mobile Station is described by Q=776-200p, where Q are gallons of gasoline sold, and p is the price in DOLLARS. Billy-Bob's supply is Q=-890+1,500p. Suppose the state government places a tax of 20 CENTS on every gallon of gasoline sold. What is the deadweight loss, resulting from this tax?

a) 3.53 dollars.

b) 3.11 dollars.

c) 0.42 dollars.

d) 96.12 dollars.

e) 34.59 dollars.

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