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0 20 40 60 80 100 100 80 60 40 20 0 PRICE (Dollars per bottle) QUANTITY (Thousands of bottles) Graph Input Tool Market for

0 20 40 60 80 100 100 80 60 40 20 0 PRICE (Dollars per bottle) QUANTITY (Thousands of bottles) Graph Input Tool Market for gin Quantity (Thousands of bottles) 25 Demand Price (Dollars per bottle) 75 Supply Price (Dollars per bottle) 25 Tax (Dollars per bottle) 0 To see the impact of the tax, enter the value of the tax in the Tax field. By entering the after-tax equilibrium quantity in the corresponding box, you will move the green line to the after-tax equilibrium. By entering 0 in the Tax field, you will see a tax wedge between the price buyers pay and the price sellers receive. When the government imposes a $20-per-bottle tax on suppliers, the equilibrium quantity of gin is40,000 bottles and the government collects$800,000 in tax revenue

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