Daily demand for gasoline at Billy-Bob's Mobile Station is described by Q  980  300p, where Q are gallons of gasoline sold and p is the price in dollars.Billy-Bob's supply is Q  22,980  3,000p.Suppose the state government places a tax of 18 cents on every gallon of gasoline sold.What is the deadweight loss resulting from this tax?

A) 4.02 dollars
B) 0.40 dollars
C) 4.42 dollars
D) 93.42 dollars
E) 58.91 dollars

Deadweight Loss

A loss in economic efficiency that occurs when the optimal quantity of a good is not produced, often due to market distortions.

Daily Demand

The total amount of a good or service that consumers are willing and able to purchase at a particular price in a single day.

Tax

A necessary financial obligation or variant form of imposition placed upon a taxpayer by a governing institution aimed at generating income for government use and public expense funding.