Scenario Ill-1 Suppose the market demand for milk is (1d = 41] 4P Where ad is millions of gallons demanded and P is price per gallon. Suppose the market supply for milk is (Is = 4W3 + EDISP Question 23 What is the equilibrium price in this market? Rcu nd to two decimal places and do not enter a '3' sign. Question 24 What is the equilibrium quantity in this market (in millions of dollars}? Round to two decimal places. Question 25 Suppose a tax of $1 per gallon of milk is imposed in this market. What is the new price paid by consumers? Hint rt does not matter if the tax is collected from purchasers or sellers. Hound to the nearest cent and do not enter a '3' sign. 1v'vhat is the Iguant'rtypr of milk sold (in millions of gallons} after the 31 tax is imposed. Ftound to two decimal places. How much is collected in revenue alter the $1 per gallon tax is imposed? Answer in millions of dollars and round to two decimal places. Do not enter a '3' sign. What is the value of deadweight loss resulting from the $1 tax on milk? Answer in millions, round to two decimal places and do not enter a '$' sign. Suppose the government decides to increase the tax levied on milk from $1 to $2. What is the new value of tax revenue? Answer is millions. round to two decimal places and do not enter a '3' sign. Question 30 Suppose the government decides to increase the tax levied on milk from $1 to $2. 1I.r'|.|'hat is the new value of deadweight loss? Answer in millions, round to two decimal places and do not enter a '3' sign. Question 31 Calculate tax revenue for tax. rates of $3. $4 and $5 per gallon of milky. Ta): revenue reaches a maximum at D $5 per gallon of milk. CI 33 per gallon of milk. CI 34 per gallon of milk. (3: a tax rate greater than $5 per gallon of milk. Question 32 As the tax rate doubles from $1 to $2 to 34. what happens to deadweight loss? [:1 Dead'weight loss morettlan doubles. [in Deadweight loss does not change. CI Deadweight loss exactly doubles. Cu Deadweight loss increases, but does not dte with each increase. Question 33 1 pts Suppose demand for milk is relative elastic and demand for gasoline is relatively inelastic. Holding all else constant, O taxing milk will generate the same deadweight losses relative the same tax on gasoline. O taxing milk will generate greater deadweight losses than the same tax on gasoline. O taxing milk will generate lower deadweight losses than the same tax on gasoline. Question 34 1 pts To minimize dead weight loss resulting from taxation, O tax revenue should be maximized. O tax rates should be kept stable over time. O tax rates should alternate between 0 and higher rates every other year. O tax rates should increase in times of need and reduced in other periods