13. Taxes and welfare Consider the market for used child's bikes. The following graph shows the demand and supply for used child's bikes before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of used child's bikes in the absence of a tax. Then use the green point (triangle symbol) to shade the area repr mer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price ? Before Tax 150 135 Equilibrium 120 Demand A Consumer Surplus 5 8 7 8 8 PRICE (Dollars per used bike Producer Surplus Supply 70 140 210 280 350 420 490 560 630 700 QUANTITY (Used bikes ) Problem Set 2 Suppose the government imposes an excise tax on used child's bikes. The black line on the following graph shows the tax wedge created by a tax of $60 per used bike. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer point (diamond symbol) to shade the area representing total producer surplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss. (?) After Tax 150 135 120 Demand Tax Revenue A 105 Tax Wedge Consumer Surplus PRICE (Dollars per used bike) Producer Surplus 8 8 0 Supply + Deadweight Loss 70 140 210 280 350 420 490 560 630 700 QUANTITY (Used bikes) Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax and of consumer surplus, producer surplus, tax reve adweight loss after the tax. Note: You can determine the areas of different portions of the graph by selecting the relevant area. Before Tax After Tax Dollars) (Dollars) Consumer Surplus Producer Surplus Tax Revenue Deadweight Loss 0