First, use the tàn quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade thearea representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producersurplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss.After Tax200180Tax Revenue160Demand140Consumer Surplus120100Tax Wedge80Producer SurplusSupply6040Deadweight Loss20100200300400500600700800900 1000QUANTITY (Fans)PRICE (Dollars per fan) Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumersurplus, producer surplus, tax revenue, and deadweight loss after the tax.Note: You can determine the areas of different portionsthe graph by selecting the relevant area.Before TaxAfter Tax(Dollars)(Dollars)Consumer SurplusProducer SurplusTax RevenueDeadweight Loss

Consumer surplus is the difference between maximum price consumers are willing to pay and market…

First, use the tàn 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. After Tax 200 180 Tax Revenue 160 Demand 140 Consumer Surplus 120 100 Tax Wedge 80 Producer Surplus Supply 60 40 Deadweight Loss 20 300 400 500 600 700 800 900 1000 100 200 QUANTITY (Fans) PRICE (Dollars per fan)

First, use the tàn 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. After Tax 200 180 Tax Revenue 160 Demand 140 Consumer Surplus 120 100 Tax Wedge 80 Producer Surplus Supply 60 40 Deadweight Loss 20 300 400 500 600 700 800 900 1000 100 200 QUANTITY (Fans) PRICE (Dollars per fan)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section: Chapter Questions

Problem 9PA

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