The graph shows the market for mugs in which the government has imposed a tax of $4 per mug. Draw a point to show the price paid by buyers and the quantity bought. Draw shapes that represent the following: 1) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the tax revenue received by the government. Label it TR. 4) the deadweight loss created by the tax. Label it DWL. >>> A label can be repositioned by clicking on the edge of the label box and dragging it onto the shape.

The graph shows the market for mugs in which the government has imposed a tax of $4 per mug. Draw a point to show the price paid by buyers and the quantity bought. Draw shapes that represent the following: 1) consumer surplus. Label it CS. 2) producer surplus. Label it PS. 3) the tax revenue received by the government. Label it TR. 4) the deadweight loss created by the tax. Label it DWL. >>> A label can be repositioned by clicking on the edge of the label box and dragging it onto the shape.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter8: Application: The Cost Of Taxation

Section8.1: The Oeadweight Loss Of Taxation

Problem 1QQ

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Question

The graph shows the market for mugs in which the government has imposed a tax of $4 per mug.
Draw a point to show the price paid by buyers and the quantity bought.
Draw shapes that represent the following:
1) consumer surplus. Label it CS.
2) producer surplus. Label it PS.
3) the tax revenue received by the government. Label it TR.
4) the deadweight loss created by the tax. Label it DWL.
>>> A label can be repositioned by clicking on the edge of the label box and dragging it onto the shape.
esc
↑.
C
Selected:
none
$
▸
0

Delete Clear
16.00-
14.00-
12.00-
10.00-
8.00-
Price (dollars per mug)
6.00-
4.00
2.00
0.00
?
0
2
S+tax
S
4
6
8
10
12
Quantity (millions of mugs per year)
>>> Draw only the objects specified in the question.
14
Next
US 5:00

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