9 E V 71% 6 0 Q G) R ng.cengage.com C a + 33 Q Illinois state Uni... .'I': MindTap Ceng... u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero Dylan v a: CENGAGE I MINDTAP Q Search this course 9 My Home Assignment 9 o X The government is considering levying a tax of $100 per unit on suppliers of either leather jackets or smartphones. The supply curve for each of these Courses two goods is identical, as you can see on each of the following graphs. The demand for leather jackets is shown by DL (on the first graph), and the demand for smartphones is shown by D5 (on the second graph). Catalog and Study Tools Suppose the government taxes leather jackets. The following graph shows the annual supply and demand for this good. It also shows the supply curve ( Rental Options S + Tax) shifted up by the amount of the proposed tax ($100 per jacket). College Success Tips On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for leather jackets. Then use the Career Success Tips black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. 6) Leather Jack-to Market 240 H Think Before You Drop! The 220 Consequences of... 200 Tax Revenue 0 mo 3 9 Help g 150 .'1 Deadweight Loss 5 140 , a. J Give Feedback 2 120 I\" E e, 100 B E so CL 60 40 20 0 l l l l l l l l l l l l 0 50 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Jackets) E V 71% e G 0 Q G) ng.cengageicom C a + SE Q Illinois state Uni... .'I': MindTap Ceng... u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero Dylan V i: CENGAGE I MINDTAP Q Search this course 9 My Home Assignment 9 o X C Instead, suppose the government taxes smartphones. The following graph shows the annual supply and demand for this good, as well as the supply DLII'SES curve shied up by the amount of the proposed tax ($100 per phone). Catalog and Study Tools On the following graph, do for smartphones the same thing you did previously on the graph for leather jackets. Use the green rectangle (triangle Rental Options symbols) to shade the area that represents tax revenue for smartphones. Then, use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. College Success Tips C?) Career Success Tips Smartphones Market 240 Tax Revenue $4} Deadweighl Loss 220 200 Think Before You Drop! The \"3 Consequences of... 160 ' 140 120 9 Help 100 J Give Feedback 80 PRICE (Dollars per phone) 60 4O 20 0 50 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Phones) 9 E V 71% 6 0 Q G) R ng.cengage.com C a + 33 Q Illinois state Uni... .'I': MindTap Ceng... u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero u Course Hero Dylan V '2: CENGAGE | MINDTAP Q Search this course 9 My Home Assignment 9 o X 130 3 Courses a g 160 '5. 140 Deatwveighl Loss Catalog and Study Tools '3 E IZD Rental Options 8 100 Lu 9 80 College Success Tips E so Career Success Tips '0 20 DS 0 0 so 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Phones) Think Before You Drop! The Consequences of... _ _ _ Complete the followmg table With the tax revenue collected and deadweight loss caused by each of the tax proposals. 0 Tax Revenue Deadwelght Loss 9 HE'P If the Government Taxes... (Dollars) (Dollars) Leather jackets at $100 per jacket E] Give Feedback Smartphones at $100 per phone 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 v because, all else held constant, taxing a good with a relatively V elastic demand generates larger tax revenue and smaller deadweight loss. Grade It Now Save & Continue : 7 Continue without saving