00:01
For this question, we're given the graph and we want to find out which of the following is correct according to the graph.
00:07
So the graph after the implementation of the tax would look like this.
00:12
This is the quantity and this is the price and this goes 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22 and this goes up 22, 20, 18, 16, 14, 12, 10, 8, 6, 4, 2.
00:38
So at 10 and at 10, this meets and at 14 and at 0 .6, this meets at 6 and there's an intersection right at this point and then another one right here on 20.
01:15
So this is what the graph looks like.
01:19
So the correct options, the first says that the consumer surplus after tax is 1 over 2 times 6 times 6.
01:35
So this is 18.
01:39
For this question, so this is 18.
01:42
So that option is correct.
01:44
Now the total surplus is given by producer surplus plus consumer surplus.
01:53
Now producer surplus is 2 times 6 times 6 which is, this is 18 and consumer surplus is 18.
02:04
So the total surplus is 36.
02:09
This option is not correct.
02:13
So the government revenue is 8 times 6 which is 16.
02:22
This option is correct...