The following graph represents the demand and supply for an


The following graph represents the demand and supply for an imaginary good called a pinckney. The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario..

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Complete the following table, given the information presented on the graph.

Result

Value

Per-unit tax

$

Price consumers pay after tax

$

Equilibrium quantity after tax

$

 In the following table, indicate which of the previous graph’s areas corresponds to each concept. Check all that apply.

 

Concept

A

B

C

D

E

F

Producer surplus after the tax is imposed

 

 

 

 

 

 

Consumer surplus after the tax is imposed

 

 

 

 

 

 

Deadweight loss after the tax is imposed

 

 

 

 

 

 

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Business Economics: The following graph represents the demand and supply for an
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