Suppose the government levies a tax of the vertical distance from point A to point B. Using the graph shown, determine the value of each of the following:
a. equilibrium price before the tax
b. consumer surplus before the tax
c. producer surplus before the tax
d. total surplus before the tax
e. consumer surplus after the tax
f. producer surplus after the tax
g. total tax revenue to the government
h. total surplus consumer surplus+producer surplus+tax revenue) after the tax
i. deadweight loss

Question

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The Answer of Suppose the government levies a tax of the vertical distance from point A to point B. Using the graph shown, determine the value of each of the following:
a. equilibrium price before the tax
b. consumer surplus before the tax
c. producer surplus before the tax
d. total surplus before the tax
e. consumer surplus after the tax
f. producer surplus after the tax
g. total tax revenue to the government
h. total surplus consumer surplus+producer surplus+tax revenue) after the tax
i. deadweight loss

Suppose the Government Levies a Tax of the Vertical Distance