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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 0   Deadweight Loss 0

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 0   Deadweight Loss 0

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 0
 
Deadweight Loss 0
 
 
Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $120 per scooter. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer surplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss. PRICE (Dollars per scooter) 300 270 240 210 180 Tax Wedge 150 120 90 60 30 0 Demand 0 140 280 Supply After Tax 420 560 700 840 980 QUANTITY (Scooters) 1120 1260 1400 Tax Revenue A Consumer Surplus Producer Surplus Deadweight Loss ?
Transcribed Image Text:Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $120 per scooter. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer surplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss. PRICE (Dollars per scooter) 300 270 240 210 180 Tax Wedge 150 120 90 60 30 0 Demand 0 140 280 Supply After Tax 420 560 700 840 980 QUANTITY (Scooters) 1120 1260 1400 Tax Revenue A Consumer Surplus Producer Surplus Deadweight Loss ?
Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. 300 270 Demand 240 210 17 180 150 120 Supply PRICE (Dollars per scooter) 90 60 30 0 0 140 Before Tax 280 420 560 700 840 980 1120 1260 1400 QUANTITY (Scooters) ++ Equilibrium Δ Consumer Surplus Producer Surplus ?
Transcribed Image Text:Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. 300 270 Demand 240 210 17 180 150 120 Supply PRICE (Dollars per scooter) 90 60 30 0 0 140 Before Tax 280 420 560 700 840 980 1120 1260 1400 QUANTITY (Scooters) ++ Equilibrium Δ Consumer Surplus Producer Surplus ?
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