Question 1 (24 points) Suppose the government levies a tax of 40. Using the graph shown, determine the value of each of the following: (Show all of your calculations if there is any calculations. If you just write the answers, you will not get the full credit.) 100 b. a. equilibrium price before the tax. consumer surplus before the tax. producer surplus before the tax. d. total surplus before the tax. C. 90 8.5 70 50 40 10 30 c f. g. h. i. 3. k What is the price of buyers after tax? What is the price of sellers after tax? What is the incidence of tax? consumer surplus after the tax. producer surplus after the tax. total tax revenue to the government. total surplus (consumer surplus+producer surplus+tax revenue) after the tax. deadweight loss. price S D 10 20 30 40 50 60 70 80 90 100 quantity
Question I 24 points Suppose the government levies a tax of 40. Using the graph shown, determine the value of each of the following (Show all of your calculations if there is any calculations. If you just write the answers, you will not get the full credit.) 1. equilibrium price before the tax b. consumer surplus before the tax producer surplus before the tax d. total surplus before the tax. c. What is the price of buyers after tax f What is the price of sellers after tax? What is the incidence of tax? h. consumer surplus after the tax 1 producer surplus after the tax 1. total tax revenue to the government. total surplus (consumer surplus+producer surplus+tax revenue) after the tax deadweight loss.