In year 1 there is no regulation in the competitive market for milk. The market demand is P = 840 4Q and the market supply is P = 336 + 2Q. In year 2 the government introduces a production tax of 54. In year 3, the government decides to increase the tax by 18. By how much does the government surplus change between year 2 and 3 {round to the second decimal place) ? Select one: a. It drops by 4.00% b. It drops by 0.90% '--- c. it increases by 2.22% 1' d. It increases by 28.00% Your answer is incorrect. The correct answer is: It increases by 28.00%