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C. Consider a tax on the producers in a market. By using supply and demand curves, show the consumer surplus, producer surplus, the equilibrium price
C. Consider a tax on the producers in a market. By using supply and demand curves, show the consumer surplus, producer surplus, the equilibrium price and quantity traded before tax. Now show the consumer surplus, producer surplus, equilibrium price and quantity traded after tax. What happens to consumer surplus, producer surplus, equilibrium price and quantity traded after tax? Please show the revenue of the tax and the deadweight loss associated with the tax. D. Now do the same exercise in part-c by assuming a tax on consumers. E. What is the Laffer curve? Does the revenue of a tax keep on increasing as the size of the tax increases? Why or why not? F. What happens to the deadweight loss of a tax as the size of the tax increases
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