Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced textiles).

a. Using Figure 4, identify the quantity consumed and the quantity produced in Isoland under a textile consumption tax.

b. Construct a table similar to that in Figure 4 for the textile consumption tax.

c. Which raises more revenue for the government—

the consumption tax or the tariff? Which has a smaller deadweight loss? Explain.