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Answer the following with work b) Find the before tax market equilibrium quantity and price (05;, P53)- Show your solution graphically. Label graph appropriately. (2)

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Answer the following with work

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b) Find the before tax market equilibrium quantity and price (05;, P53")- Show your solution graphically. Label graph appropriately. (2) Calculate the before tax consumer surplus, producer surplus and social welfare. 1) Consider the market for gasoline in Sonoma County. The supply and demand functions below represent this market. Sonoma County is considering a new gasoline tax (i.e. a per unit excise tax on gasoline). P = 20 .010 P = .0050 + .S 3) Find the price intercepts for the supply and demand curves. d) Suppose that the county decides to put an excise tax on the EELLEB; How does this event impact the market for gasoline? Explain using only words. e) Assuming a $2 dollar per unit excise taxis assessed on sellers, find the after tax equilibrium quantity and prices (031,8: r: P31). Place these values in the appropriate location on the graph in part (h). f) Tax Incidence: What percentage of the tax do Consumers pay? What percentage of the tax do Sellers pay? g) How much tax revenue does the government collect? Calculate R

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