Suppose a tax is levied in the market for soda. Consider a $0.50 excise tax on producers for each soda sold. The graph illustrates the demand and supply
d. What is the
Instructions: Use the tool provided “CStax” to illustrate this area on the graph.
Consumer surplus after the imposition of the tax is $ thousand.
e. What is the
Instructions: Use the tool provided “PStax” to illustrate this area on the graph.
Producer surplus after the imposition of the tax is $ thousand.
f. What is the total revenue generated from the tax? Shade in this area on the graph.
Instructions: Use the tool provided “TR” to illustrate this area on the graph.
Tax revenue from the tax after the imposition of the tax is $ thousand.
g. What is the total economic surplus generated after the imposition of the tax?
Total economic surplus after the imposition of the tax is $ thousand.
h. What is the
Instructions: Use the tool provided “DWL” to illustrate this area on the graph.
The deadweight loss after the imposition of the tax is $ thousand.
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