8 Having rejected a tariff on steel (a tax on imports), the Prime Minister of lsoland is now considering the same-sized tax on steel consumption (including both imported and domestically produced steel).

a Using Figure 9.4, identify the quantity consumed and the quantity produced in lsoland under a steel consumption tax.

b Construct a table similar to that in Table 9.3 for the steel consumption tax.

c Which raises more revenue for the government - the consumption tax or the tariff?

Which has a smaller deadweight loss? Explain.