c. Tax revenue is T x Q. Use your answer to part (b) to solve for tax revenue, consumer surplus and producer surplus b. The deadweight loss of a tax is the area of the triangle between the supply and demand curves Recalling that the area of a triangle is /2 x base x height, solve for deadweight loss
c. Tax revenue is T x Q. Use your answer to part (b) to solve for tax revenue, consumer surplus and producer surplus b. The deadweight loss of a tax is the area of the triangle between the supply and demand curves Recalling that the area of a triangle is /2 x base x height, solve for deadweight loss
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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