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 Demand 250 225 200 Equilibrium 175 150 Consumer Surplus PRCE Dar pertani 125 100 Producer Surplus 75 Supply Before Tax Demand 250 .+ 225 200 Equilibrium 175 150 Consumer Surplus PRCE (Dollars per fari 125 100 Producer Surplus 75 Supply 50 25 70 140 210 280 350 420 490 560 630 700 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 $75 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 Demand 250 225 200 Tax Revenue 175 A 150 Consumer Surplus 125 PRCE Dolars per fan o 100 Tax Wedge Producer Surplus 75 Supply 50 Deadweight Loss 0 0 70 630 700 140 210 350 40 560 QUANTITY (Fans) Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumer surplus, producer surplus, tax revenue, and deadweight loss after the tax Note: You can determine the areas of different portions of the graph by selecting the relevant area. Before Tax (Dollars) After Tax (Dollars) Consumer Surplus Producer Surplus Tax Revenue Deadweight Loss 0 0