2. Taxes and welfare Consider the market for commercial fans. The following graph shows the demand and supply for commercial fans before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of commercial fans in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer 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 200 180 Demand Equilibrium 180 A 140 Consumer Surplus 120 100 PRICE (Dollars per fan) 30 Producer Surplus Supply 40 20 60 120 180 240 300 380 420 480 540 800 QUANTITY (Fans)Suppose the government imposes an excise tax on commercial fans. The black line on the following graph shows the tax wedge created by a tax of $80 per fan. 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 surplus after the tax. Then, use the purple 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 200 180 Demand Tax Revenue 180 A 140 120 Tax Wedge Consumer Surplus 100 O PRICE (Dollars per fan) Producer Surplus 80 Supply AD Deadweight Loss 20 0 60 120 180 240 300 380 420 480 540 800 QUANTITY (Fans)Comp-Fete the following table by using the previous graphs no determine the vafues of consumer and producer surplus before the tax, and consumer surplus, pmn'ucersqul'us, tax revenue, and deadweight loss aer the tax. Note: You can determine the areas of different portions of the graph by selecting the relevant area. Il-efnre Tax Afber Tax {Dolla) (Dollars) Consumer Surplus i i i hummus [:1 l:|