Interactive cost of a gasoline tax Quantity (millions of gallons a week) Price per gallon ($) SD S + tax Drivers’ gain$16M Stations’ gain$16M State revenue$16M Deadweight loss$2M $5 $6 $4 10 No tax: drivers gain $25M and stations gain$25M. With the $2 tax: $16M and $16M. The two sides lose $18M. The state collects $16Mof it, and $2M goes to no one: the deadweight loss. Drag the brass handle, or use the arrow keys (Up = more tax). 8 xx