The following graph depicts a market where a tax has been imposed. P, was theequilibrium price before the tax was imposed, and Qe was the equilibrium quantity.After the tax, Pc is the price that consumers pay, and Ps is the price that producersreceive. QT units are sold after the tax is imposed. NOTE: The areas B and C arerectangles that are divided by the supply curve ST. Include both sections of thoserectangles when choosing your answers.STS.AP.GP.the deadweight loss createdas a result of the taxthe total tax revenuecellectod from thic toxE.P. the deadweight loss createdas a result of the taxthe total tax revenuecollected from this tax1. A+B + C + E + F +Gthe total cost to society, interms of lost total surplus,created as a result of the2.A + Etax3. F+GF + Gthe sum of producer andconsumer surplus in thismarket after the tax isimposed4.В + Сthe sum of producer andconsumer surplus in thismarket before the tax isimposed

Pre-tax equilibrium is at intersection of D and S curves. Post-tax equilibrium is at intersection of…

the deadweight loss created as a result of the tax the total tax revenue collected from this tax the total cost to society, in terms of lost total surplus, 1. A+B+ C + E +F +G created as a result of the 2. A+E tax 3. F+G the sum of producer and consumer surplus in this market after the tax is 4. B+C imposed the sum of producer and consumer surplus in this market before the tax is imposed >

the deadweight loss created as a result of the tax the total tax revenue collected from this tax the total cost to society, in terms of lost total surplus, 1. A+B+ C + E +F +G created as a result of the 2. A+E tax 3. F+G the sum of producer and consumer surplus in this market after the tax is 4. B+C imposed the sum of producer and consumer surplus in this market before the tax is imposed >

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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