You are given the following information on a proposed “restaurant meals tax” in the Republic of Olympus. Olympus collects no other specific excise taxes, and all other government revenues come from a neutral lump-sum tax. (A lump-sum tax is a tax of a fixed sum paid by all people regardless of their circumstances.) Assume further that the burden of the tax is fully borne by consumers.

Now consider the following data:

 Meals consumed before the tax: 12 million

 Meals consumed after the tax: 10 million

 Average price per meal: $15 (not including the tax)

 Tax rate: 10 percent Estimate the size of the excess burden of the tax. What is the excess burden as a percentage of revenues collected from the tax?