I understand that total surplus is consumer surplus plus producer surplus. And I understand that deadweight loss occurs from the tax. How do I actually find the answer to this question though? How do I math it? The only equation I’ve used for this chapter so far is for the area of a triangle which ia 1/1 x B xH. If you could graph this out for me that would be great. I’m a visual learner **Question:**Refer to Figure 8-5. What would happen to total surplus in this market if a tax were imposed?**Figure 8-5:**- **Axes:** - Y-axis (Price) - $22 at the top - $16, $10, and $6 are also marked - The price starts at $2 - X-axis (Quantity) - Total range of 0 to 800 - 300 and 600 are marked- **Curves:** - **Supply Curve (S):** Upward-sloping - **Demand Curve (D):** Downward-sloping- **Tax:** - The vertical line between the demand and supply curves indicates a tax. - The price on the Y-axis indicates that the tax shifts the price from $10 to $16 and from $10 to $6.**Answer Choices:**- ☐ It would increase by $3000.- ☐ It would fall by $1500.- ☐ It would fall by $3000.- ☐ It would increase by $1500.

Deadweight loss: - Deadweight loss is the loss of benefit or the surplus to the society due to…

Answered: Refer to Figure 8-5. What would happen…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I understand that total surplus is consumer surplus plus producer surplus. And I understand that deadweight loss occurs from the tax. How do I actually find the answer to this question though? How do I math it? The only equation I’ve used for this chapter so far is for the area of a triangle which ia 1/1 x B xH. If you could graph this out for me that would be great. I’m a visual learner

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