Suppose the market demand for milk is  Qd = 40 – 4P Where Qd is millions of gallons demanded and P is price per gallon.  Suppose the market supply for milk is Qs = - 40/3 + 20/3P   Suppose demand for milk is relative elastic and demand for gasoline is relatively inelastic. Holding all else constant, A.taxing milk will generate lower deadweight losses than the same tax on gasoline. B.taxing milk will generate the same deadweight losses relative the same tax on gasoline. C.taxing milk will generate greater deadweight losses than the same tax on gasoline.

(a) Suppose in a competitive market, the market demand curve for salt is infinitelyinelastic. What is the impact of a per-unit tax (i.e. a specific tax) on the priceof salt that consumers pay? Suppose the demand curve for butter is Q = 50 − 3P and the supply curve isQ = 2P. Suppose the government announces a per-unit tax of 1 on the priceof butter. Tax on butter can be seen as a ’fat tax’. What is the overall effectof a fat tax on the consumers?    Please do not use chat gpt and answer the best way it can be.

Doyle and Samphantharak (2008) find that when a 5% gas tax is implemented, prices consumers pay for gas increase by about 4%. What role does demand elasticity play in determining the size of this price change? That is, under what demand elasticity cases would the price change be closer to 5%, or closer to 0%? Illustrate and explain using supply-and-demand graph(s)..

Note: use of chat gpt or Google bard is strictly prohibited.