Interactive tax wedge in the gasoline market SD S + taxD − tax Quantity (millions of gallons a week) Price per gallon ($) $5 $6 $4 10 Tax $2 8 No tax Tax $2 on stations: drivers pay $6, stations keep $4, 8M gallons trade. The state collects $16M a week. The price rose$1, less than the tax, and stations keep $1 less. Drag the brass handle, or use the arrow keys (Up = more tax). Tax on stations Tax on drivers Test $7: full tax xx