7. Use the following graph to answer questions a–f.

a. What area represents consumer surplus before the tax?

b. What area represents producer surplus before the tax?

c. What area represents consumer surplus after the tax?

d. What area represents producer surplus after the tax?

e. What area represents the tax revenue after the tax?

f. What area represents the deadweight loss after the tax?

Transcribed Image Text:

Price A B Amount of the tax C D F S Tax 5 D Quantity