The following table shows the effect of an import tariff on the nation of Isoland. Complete the remaining columns of the following table by indicating the effect of the same-sized tax on textile consumption. Under Tariff Under Consumption Tax Before Tariff or Tax After Change After Change Consumer A + B + C + D +E + F A + B - (C +D+E + F) Surplus Producer Surplus C+ G +C Government None E +E Revenue Total Surplus A +B +C+ D +E + F+ G A + B + C + E + G – (D + F) Compared to the tariff, the consumption tax raises revenue for the government and has deadweight loss associated with it.

The following table shows the effect of an import tariff on the nation of Isoland. Complete the remaining columns of the following table by indicating the effect of the same-sized tax on textile consumption. Under Tariff Under Consumption Tax Before Tariff or Tax After Change After Change Consumer A + B + C + D +E + F A + B - (C +D+E + F) Surplus Producer Surplus C+ G +C Government None E +E Revenue Total Surplus A +B +C+ D +E + F+ G A + B + C + E + G – (D + F) Compared to the tariff, the consumption tax raises revenue for the government and has deadweight loss associated with it.