Suppose the market demand-and-supply curves for the gasoline market are as given below. In each case, quantity refers to

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Suppose The Market Demand And Supply Curves For The Gasoline Market Are As Given Below In Each Case Quantity Refers To 1 (34.44 KiB) Viewed 16 times

Suppose the market demand-and-supply curves for the gasoline market are as given below. In each case, quantity refers to millions of litres of gasoline per month, price is the price per litre (in cents). Demand: P=400-240⁰ Supply: P=160+6QⓇ Given these equations, the equilibrium price is 208 cents and the equilibrium quantity is 8.0 million litres. Compute the total revenue raised by the gasoline tax. What share of this tax revenue is "paid by consumers, and what share is "paid" by producers? (Hint: if the consumer price were unchanged fipm the pre-tax equilibrium, we would say that consumers pay none of the tax.) When the government imposes a tax of 60 cents per litre, Q'new=6 million litres, the price consumers now pay is 256 cents and the price producers now receive is 196 cents million (Enter your response rounded to two decimal The total revenue raised by the gasoline tax is $ places.)