The government places a tax on the purchase ofsocks.a. Illustrate the effect of this tax on equilibriumprice and quantity in the sock market. Identifythe following areas both before and afterthe imposition of the tax: total spending byconsumers, total revenue for producers, andgovernment tax revenue.b. Does the price received by producers rise or fall?Can you tell whether total receipts for producersrise or fall? Explain.c. Does the price paid by consumers rise or fall? Canyou tell whether total spending by consumersrises or falls? Explain carefully. (Hint: Think aboutelasticity.) If total consumer spending falls, doesconsumer surplus rise? Explain

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