1. Taxes and Efficiency Suppose the government is thinking about levying a perunit tax of $120 on firms supplying either gaming consoles or internet routers. The supply curves for both of the two goods are identical, as given by the following graphs. The demand for gaming consoles is given by Dc (on the first graph), and the demand for internet routers is given by 133 (on the second graph}. Suppose the government decides to tax gaming consoles. The following graph plots the yearly demand and supply for this good. It also plots another supply curve (S + Tax) shifted upward by the proposed tax amount ($120 per console). On the followlng graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for gaming consoles. Then use the black triangle (plus symbols) to shade the area that represents the deadwelght loss associated with the tax. Gaming Consoles Market 240 220 S+Tax Supply 200 Tax Revenue 180 160 Deadweight Loss 140 120 PRICE (Dollars per console) 100 80 Do 60 40 20 0 50 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Consoles)Suppose the government decides to tax internet routers, instead. The following graph plots the yearly supply and demand curves for this good, as well as another supply curve shifted upward by the proposed tax amount ($120 per router). On the following graph, perform the same exercise that you did on the graph for gaming consoles. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for internet routers. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.Internet Routers Market 240 S+ Tax Supply 220 Tax Revenue 200 180 160 Deadweight Loss 140 120 PRICE (Dollars per router) 100 80 60 40 20 50 100 150 200 250 300 350 400 450 500 550 600 0 QUANTITY (Routers)Complete the follom'ng table by entering the tax revenue collected and deadweight loss caused by each of the two tax proposals. Tax Revenue Deadweight Loss If the Government Taxes... (Dollars) ( Dollars ) Gaming consoles at $120 per console I I I I Internet routers at $120 per router - internet routers gaming consoles If the goal of the government is to impose the tax that is more efficient, it should tax V . (Hint: Assume the administrative burdens of the two tax laws are equal.)