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.

\fComplete the following table, given the information presented on the graph. Result Value Per-unit tax Equilibrium quantity before tax Price consumers pay before tax In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept A B C D E F Consumer surplus after the tax is imposed O O O O O Tax revenue after the tax is imposed O O O O O O Producer surplus after the tax is imposed O O O O