a) Assume a discount rate of 5% and that this annual deadweight loss will persist forever at the current level. What is the present value of deadweight loss from all current and future externalities?

b) What level of Pigouvian tax will eliminate this deadwight loss?

c) At the economically efficient tax, find:

1) The new price consumers would pay inclusive of the tax.

2) The new per capita consumption of gas.

3) Tax revenue.

4) The change in consumer surplus.

5) The change in producer surplus.

not change with @) find each of the following: Gas Market Supply (Marginal Private Cost) $/Gallon Demand (Marginal WTP) 0.0 0.2 0.4 1.2 1.8 18 20 Q, Per capita Gallons/Day