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The graph shows the market for mechanical pencils in which the government has imposed a sales tax of $2 per mechanical pencil on sellers. Draw a point at the price paid by the buyers and the quantity of mechanical pencils bought. Draw the government's tax revenue. Label it TR. Draw the producer surplus. Label it PS. Draw the consumer surplus. Label it CS. Draw the deadweight loss from the tax. Label it DWL. >>> A label box can be dragged by its edge to a new position. 18.00- 16.00- 14.00 12.00 10.00- 8.00+ 6.00- 4.00 2.00 0.00- Price (dollars per mechanical pencil) 0 S+tax S Q D 2 6 8 10 12 14 Quantity (millions of mechanical pencils per year) >>> Draw only the objects specified in the question. Q

The graph shows the market for mechanical pencils in which the government has imposed a sales tax of $2 per mechanical pencil on sellers. Draw a point at the price paid by the buyers and the quantity of mechanical pencils bought. Draw the government's tax revenue. Label it TR. Draw the producer surplus. Label it PS. Draw the consumer surplus. Label it CS. Draw the deadweight loss from the tax. Label it DWL. >>> A label box can be dragged by its edge to a new position. 18.00- 16.00- 14.00 12.00 10.00- 8.00+ 6.00- 4.00 2.00 0.00- Price (dollars per mechanical pencil) 0 S+tax S Q D 2 6 8 10 12 14 Quantity (millions of mechanical pencils per year) >>> Draw only the objects specified in the question. Q

Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 3QCMC
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The graph shows the market for mechanical pencils in which the government has imposed a sales tax of $2 per mechanical pencil on sellers. Draw a point at the price paid by the buyers and the quantity of mechanical pencils bought. Draw the government's tax revenue. Label it TR. Draw the producer surplus. Label it PS. Draw the consumer surplus. Label it CS. Draw the deadweight loss from the tax. Label it DWL. >>> A label box can be dragged by its edge to a new position. 18.00 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- 0.00+ 0 Price (dollars per mechanical pencil) D S+ tax S 2 4 8 10 12 14 6 Quantity (millions of mechanical pencils per year) >>> Draw only the objects specified in the question.
Transcribed Image Text:The graph shows the market for mechanical pencils in which the government has imposed a sales tax of $2 per mechanical pencil on sellers. Draw a point at the price paid by the buyers and the quantity of mechanical pencils bought. Draw the government's tax revenue. Label it TR. Draw the producer surplus. Label it PS. Draw the consumer surplus. Label it CS. Draw the deadweight loss from the tax. Label it DWL. >>> A label box can be dragged by its edge to a new position. 18.00 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 4.00- 2.00- 0.00+ 0 Price (dollars per mechanical pencil) D S+ tax S 2 4 8 10 12 14 6 Quantity (millions of mechanical pencils per year) >>> Draw only the objects specified in the question.
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