The graph shows the market for posters in which the government has imposed a tax of $2 per poster. 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.

Principles of Macroeconomics (MindTap Course List)
8th Edition
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Author:N. Gregory Mankiw
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Chapter8: Application: The Costs Of Taxation
Section8.1: The Deadweight Loss Of Taxation
Problem 1QQ
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16.00-
14.00
12.00
10.00-
8.00-
6.00
Price (dollars per poster)
4.00-
2.00-
0.00+
0
2
4
D
S+ tax
S
6
8
10
12
Quantity (millions of posters per year)
>>> Draw only the objects specified in the question.
14
Next
Transcribed Image Text:16.00- 14.00 12.00 10.00- 8.00- 6.00 Price (dollars per poster) 4.00- 2.00- 0.00+ 0 2 4 D S+ tax S 6 8 10 12 Quantity (millions of posters per year) >>> Draw only the objects specified in the question. 14 Next
The graph shows the market for posters in which the government has imposed a tax of $2
per poster.
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.
F
C
Transcribed Image Text:The graph shows the market for posters in which the government has imposed a tax of $2 per poster. 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. F C
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