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2. Taxes and welfare Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes
2. Taxes and welfare Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters 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 (alamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. Before Tax 300 Hut Demand Equilibrium Consumer Simplyin PRICE Dollar por booster Producer Surge Supply QUANTITY facadery
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