PLEASE ANSWER THE GRAPHS AS WELL AS THE BOLDED QUESTIONS AND TABLES. The government is considering levying a tax of $60 per unit on suppliers of either concert tickets or bus passes. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for concert tickets is shown by DCDC (on the first graph), and the demand for bus passes is shown by DBDB (on the second graph).Suppose the government taxes concert tickets. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S+TaxS+Tax) shifted up by the amount of the proposed tax ($60 per ticket).On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for concert tickets. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. FIRST PICTURE GOES HERE On the following graph, do the same thing that you did on the graph for concert tickets. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for bus passes. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. SECOND PICTURE GOES HERE If the government wants to impose the tax that is more efficient, it should tax CONCERT OR BUS PASSES . (Hint: Assume the administrative burdens of the two tax laws are equal.) Concert Tickets Market120110SupplyS+Tax100Tax Revenue9080Deadweight Loss7060Dc504030201050100150 200 250 300 350 400 450 500 550 600QUANTITY (Tickets)Instead, suppose the government taxes bus passes. The following graph shows the annual supply and demand for this good, as well as the supplycurve shifted up by the amount of the proposed tax ($60 per pass).On the following graph, do the same thing that you did on the graph for concert tickets. Use the green rectangle (triangle symbols) to shade the areathat represents tax revenue for bus passes. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight lossassociated with the tax.PRICE (Dollars per ticket) Bus Passes Market120110SupplyS+Tax100Tax Revenue9080Deadweight Loss7060504030201050100150200250 300 350 400450 500550600QUANTITY (Passes)Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals.Tax RevenueDeadweight LossIf the Government Taxes...(Dollars)(Dollars)Concert tickets at $60 per ticketBus passes at $60 per passPRICE (Dollars per pass)

Question

PLEASE ANSWER THE GRAPHS AS WELL AS THE BOLDED QUESTIONS AND TABLES. The government is considering levying a tax of $60 per unit on suppliers of either concert tickets or bus passes. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for concert tickets is shown by DCDC (on the first graph), and the demand for bus passes is shown by DBDB (on the second graph).Suppose the government taxes concert tickets. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S+TaxS+Tax) shifted up by the amount of the proposed tax ($60 per ticket).On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for concert tickets. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. FIRST PICTURE GOES HERE  On the following graph, do the same thing that you did on the graph for concert tickets. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for bus passes. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. SECOND PICTURE GOES HERE  If the government wants to impose the tax that is more efficient, it should tax CONCERT OR BUS PASSES  . (Hint: Assume the administrative burdens of the two tax laws are equal.) Concert Tickets Market120110SupplyS+Tax100Tax Revenue9080Deadweight Loss7060Dc504030201050100150 200 250 300 350 400 450 500 550 600QUANTITY (Tickets)Instead, suppose the government taxes bus passes. The following graph shows the annual supply and demand for this good, as well as the supplycurve shifted up by the amount of the proposed tax ($60 per pass).On the following graph, do the same thing that you did on the graph for concert tickets. Use the green rectangle (triangle symbols) to shade the areathat represents tax revenue for bus passes. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight lossassociated with the tax.PRICE (Dollars per ticket) Bus Passes Market120110SupplyS+Tax100Tax Revenue9080Deadweight Loss7060504030201050100150200250 300 350 400450 500550600QUANTITY (Passes)Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals.Tax RevenueDeadweight LossIf the Government Taxes...(Dollars)(Dollars)Concert tickets at $60 per ticketBus passes at $60 per passPRICE (Dollars per pass)

Accepted Answer

The higher the price elasticity of demand or supply, the higher is the dead weight loss.
The lesser…