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 $160 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.

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A:

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A: Consumer Surplus: Consumer surplus is the net benefits that the consumer receives by purchasing…

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A: Hence, the burden of tax falls more heavily on the less elastic side of the market.  Explanation:

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Q: None

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A: The graph after implementation of the tax is provided below.

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