Miller wants to discourage the energy drink market with a $2 tax on energy drinks (that on average cost $2.50) Cruz thinks the tax is too high, so Miller makes the tax $1.  draw a graph with the demand curve, supply curve, equilibrium price/quantity, tax price, tax incidence, tax revenue, and dead weight loss. Locate the tax revenue and indicate which letters show that on the graph. Who pays more of the tax- consumers or producers? How does the graph show this?

Principles of Microeconomics (MindTap Course List)
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Chapter6: Supply, Demand And Government Policies
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Miller wants to discourage the energy drink market with a $2 tax on energy drinks (that on average cost $2.50) Cruz thinks the tax is too high, so Miller makes the tax $1. 

draw a graph with the demand curve, supply curve, equilibrium price/quantity, tax price, tax incidence, tax revenue, and dead weight loss. Locate the tax revenue and indicate which letters show that on the graph. Who pays more of the tax- consumers or producers? How does the graph show this? 

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