54.Following two questions and this question will be based on the information below.

Given the following demand and supply function for the hypothetical economy:

p=16-q and p=4+q

If the government imposes $2 taxes on producers, the producer's surplus is

• A.$25
• B.$18
• C.$12.5
• D.$24.5
• E.None of the answers are correct.

55.Following question and this question will be based on the information below.

Given the following demand and supply function for the hypothetical economy:

p=16-q and p=4+q

If the government imposes $2 taxes on producers, the tax revenues collected by government is:

• A.$24.5
• B.$18
• C.None of the answers are correct.
• D.$12.5
• E.$10

56.Given the following demand and supply function for the hypothetical economy:

p=16-q and p=4+q

If the government imposes $2 taxes on producers, the deadweight loss in this economy is

• A.None of the answers are correct.
• B.$5
• C.$6
• D.$2
• E.$1