First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans 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. Before Tax 200 180 Equilibrium 160 Demand 140 Consumer Surplus 120 100 Producer Surplus 80 Supply 60 40 20 400 500 600 700 800 900 1000 100 200 300 QUANTITY (Fans) PRICE (Dollars per fan)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans 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.
Before Tax
200
180
Equilibrium
160
Demand
140
Consumer Surplus
120
100
Producer Surplus
80
Supply
60
40
20
400
500
600
700
800
900
1000
100
200
300
QUANTITY (Fans)
PRICE (Dollars per fan)
Transcribed Image Text:First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans 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. Before Tax 200 180 Equilibrium 160 Demand 140 Consumer Surplus 120 100 Producer Surplus 80 Supply 60 40 20 400 500 600 700 800 900 1000 100 200 300 QUANTITY (Fans) PRICE (Dollars per fan)
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