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An annual city permit fee causes the supply curve for hot dogs from food carts to shift from 51 to $2. The fee is based
An annual city permit fee causes the supply curve for hot dogs from food carts to shift from 51 to $2. The fee is based on number of units sold and therefore works like a per-item tax on sellers. Use the area tool to draw the area representing the deadweight loss that is due to the tax. To refer to the graphing tutorial for this question type, please click here. Price (5) 8 52 S1 75 7 6.5 (600.0/7.0) 6 5.5 5 4.5 15 D Quantity (per day)Part 2 (2 points) What deadweight loss results from the tax? The deadweight loss is $ per day
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