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Question: understanding the implications of taxes on welfare the following graph...

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Understanding the implications of taxes on welfare

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.


Demand Supply 32.00 C. 24.00 r 16.00 Cr 10 20 QUANTITY (Pinckneys)

PRICE (Dollars per pinckney)QUANTITY (Pinckneys)DemandSupplyABCDEF24.002016.0032.0010

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

Result

Value

Equilibrium quantity after tax
Per-unit tax
Price producers receive before 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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