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1. [25 MARKS] Assume that a monopolist has constant marginal cost M C = 20 and faces demand p = 80 Q. a.) Demonstrate on a graph how consumer surplus changes in response to a 55-per-unit tax on sellers. b.) Show if the tax revenue collected is less than, equal to, or greater than the consumer surplus loss plus the reduction in prots. R $ per unit 80 Drop in consumer surplus 52.50 50 25 20 0, Units of out at er ear MR P .0 .V Figure 1: The effect of tax increase