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 $80 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. PRICE (Dollars per scooter) 400 360 320 280 240 200 160 120 80 40 0 0 Demand Tax Wedge 200 400 + After Tax Supply 600 800 1000 1200 1400 1600 1800 2000 QUANTITY (Scooters) Tax Revenue A Consumer Surplus ◇ Producer Surplus Deadweight Loss ?

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 $80 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. PRICE (Dollars per scooter) 400 360 320 280 240 200 160 120 80 40 0 0 Demand Tax Wedge 200 400 + After Tax Supply 600 800 1000 1200 1400 1600 1800 2000 QUANTITY (Scooters) Tax Revenue A Consumer Surplus ◇ Producer Surplus Deadweight Loss ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer the attached question
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