1 point 9 The government of Islandia, a small island nation, imports heating oil at a price of $2.64 per gallon and makes it available to citizens at a price of $1.24 per gallon. If lslandians' demand curve for heating oil is given by: P = 5.72 0.000019 Q, where P is the price per gallon in dollars and Q is the quantity per year. How much economic surplus is lost as a result of the government's policy? How to answer this problem: 0 First, calculate how much oil will be consumed at the ofcial government price. Then calculate how many dollars are actually spent by multiplying the quantity you found times the government price. 0 The true marginal cost of oil for the nation is the international price: calculate how much oil lslandians would have consumed at that price, and the total amount that would have been spent (by multiplying this quantity times the international price). 0 The lost surplus from the subsidy is (what would have been spent) - (what is actually spent)