question attached For an educational purpose, this section explains how to determine the effects of a tax on a market using a supply and demand graph.### Graph AnalysisThe graph titled "After Tax" shows the interaction between supply and demand with the imposition of a tax. Here's how it's structured:- **Axes:** - The horizontal axis represents the quantity of fans. - The vertical axis represents the price in dollars per fan.- **Lines:** - The **demand** line slopes downward, showing that as price decreases, the quantity demanded increases. - The **supply** line slopes upward, indicating that as price increases, the quantity supplied increases. - A **tax wedge** is illustrated between the demand and supply lines, showing the impact of the tax on price.- **Legend:** - **Tax Revenue:** Represented by a tan quadrilateral (dash symbols). - **Consumer Surplus:** Shaded using green (triangle symbol). - **Producer Surplus:** Shaded using purple (diamond symbol). - **Deadweight Loss:** Shaded using black (plus symbol).### Instructions- Use shading to represent different economic concepts: - Identify and fill the areas for tax revenue, consumer surplus, producer surplus, and deadweight loss as indicated in the legend. ### Calculation TableThe table requires filling in values before and after the tax for:- **Consumer Surplus**: The difference between what consumers are willing to pay and what they actually pay.- **Producer Surplus**: The difference between what producers receive and the minimum they are willing to accept.- **Tax Revenue**: Shown on the table as zero before tax.- **Deadweight Loss**: Shown as zero before tax, representing the loss of economic efficiency when the equilibrium outcome is not achievable or not achieved.**Note**: Determine these values by calculating the areas of the graph's shaded sections corresponding to each economic concept.

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Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumer surplus, producer surplus, tax revenue, and deadweight loss after the tax. Note: You can determine the areas of different portions of the graph by selecting the relevant area. Before Tax After Tax (Dollars) (Dollars) Consumer Surplus Producer Surplus Tax Revenue Deadweight Loss

Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumer surplus, producer surplus, tax revenue, and deadweight loss after the tax. Note: You can determine the areas of different portions of the graph by selecting the relevant area. Before Tax After Tax (Dollars) (Dollars) Consumer Surplus Producer Surplus Tax Revenue Deadweight Loss

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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