5': CENGAGE | MINDTAP Q Search this tours Homework (Ch 03) Instead, suppose the government taxes metro cards. The following graph shows the annual supply and demand for this good, as well as the supply curve shifted up by the amount of the proposed tax ($100 per card). 0n the following graph, do for metro cards the same thing you did previously on the graph for pickleball paddles. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for metro cards. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. ._\\ C?) Metro Cards Market 240 220 Supply H 200 , , Tax Revenue 180 - S+Tax 5 ii \\ E 160 ' g l Deadweight Loss * E 140 l l" D. 9 l g 120 a l _ 9 100 u.l o l E 80 , a l 60 4o 1 20 L D l 9/80357133576&id... ( x (U CENGAGE | MINDTAP Q Search this course Homework (Ch 08) X On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for pickleball paddles. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. Pickleball Paddles Market 240 220 Supply 200 Tax Revenue 180 S+Tax 160 Deadweight Loss 140 120 PRICE (Dollars per paddle) 100 80 DP 8 40 20 0 50 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Paddles) Instead, suppose the government taxes metro cards. The following graph shows the annual supply and demand for this good, as well as the supplybl Search this com Homework (Ch 08) 3. Relationship between tax revenues, deadweight loss, and demand elasticity The government is considering levying a tax of $100 per unit on suppliers of either pickleball paddles or metro cards. The supply curve for each of these two goods is identical, as you can see on each of the following graphS. The demand for pickleball paddles is shown by D}: (on the rst graph), and the demand for metro cards is shown by DM (on the second graph). Suppose the government taxes pickleball paddles. The following graph shows the annual supply and demand For this good. It also shows the supply curve (S + Tax) shifted up by the amount of the proposed tax ($100 per paddle). On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for pickleball paddles. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. C?) Pickleball Paddles Market 240 a l 220 + ' Supply H 200 \"' /, Tax Revenue * 180 + S+Tax, ii '8 E 160 T \"3 iii: a Deadwei ht Loss '3 140 ~ g a.) , l _ Q lt', . , g , , E 120 vww ; g ,7 l ' a 100 .7... m , 9 so , D o: l is course Homework (Ch 08) X 100 PRICE (Dol 80 60 40 A-Z 20 DM 0 50 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Cards) Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals. bongo Tax Revenue Deadweight Loss If the Government Taxes... (Dollars) (Dollars) Pickleball paddles at $100 per paddle Metro cards at $100 per card Suppose the government wants to tax the good that will generate more tax revenue at a lower welfare cost. In this case, it should tax A+ because, all else held constant, taxing a good with a relatively elastic demand generates larger tax revenue and smaller deadweight loss. Grade It Now Save & Continue Continue without savingCENGAGE MINDTAP Q Search this course Homework (Ch 08) X 240 220 Supply 200 Tax Revenue 180 S+Tax 160 Deadweight Loss 140 120 PRICE (Dollars per card) 100 60 40 20 DM o 50 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Cards) Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals. Tax Revenue Deadweight Loss If the Government Taxes... (Dollars) (Dollars) Pickleball paddles at $100 per paddle Metro cards at $100 per card - . . . -If-. MacBook