Consider the market for mountain bikes .The following graph shows the demand and supply for mountain bikes before the government imposes any taxes 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 dead weight loss after tax . Note : you can determine the areas of different portions of the graphs by selecting the relevant area Consumer surplus before tax and after tax : Producer surplus before and after tax : Tax revenue after tax : Deadweight loss after tax :
Consider the market for mountain bikes .The following graph shows the demand and supply for mountain bikes before the government imposes any taxes 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 dead weight loss after tax . Note : you can determine the areas of different portions of the graphs by selecting the relevant area Consumer surplus before tax and after tax : Producer surplus before and after tax : Tax revenue after tax : Deadweight loss after tax :
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the market for mountain bikes .The following graph shows the demand and supply for mountain bikes before the government imposes any taxes
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 dead weight loss after tax .
Note : you can determine the areas of different portions of the graphs by selecting the relevant area
Consumer surplus before tax and after tax :
Producer surplus before and after tax :
Tax revenue after tax :
Deadweight loss after tax :
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