1. Understanding the implications of taxes on welfare

The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.

The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Demand Supply A PRICE (Dollars per pinckney) 7.00 B C 5.00 D F 3.00 10 20 QUANTITY (Pinckneys)Complete the following table, given the information presented on the graph. Result Value Equilibrium quantity before tax Per-unit tax Price producers receive before tax E In the following table, indicate which areas on the prewous graph correspond to each concept. Check all that apply. Concept A B C D E F Deadweight loss after the tax is imposed C] C] E] C] E] [3 Producer surplus after the tax is imposed C] C] C] C] C] C] Consumer surplus after the tax is imposed C] [:1 C] C] C] [:l Grade It Now Save & Continue Continue without saving