Homework (Ch 08) 2. Taxes and welfare Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of electric scooters in the absence of a tax. Then use the green point (triangle symbol) to shade the area representing total consumer surplus (CS) at the equilibrium price. Next, use the purple point (diamond symbol) to shade the area representing total producer surplus (PS) at the equilibrium price. (? Before Tax 100 90 Demand Equilibrium 80 A 70 Consumer Surplus PRICE (Dollars per scooter Producer Surplus Supply 20 10 160 320 480 640 800 980 1120 1280 1440 1600 QUANTITY (Scooters) Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $40 per scooter. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer surplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss.Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $40 per scooter. First, use the tan quadrilateral (dash symbols) to shade the area representing tax revenue. Next, use the green point (triangle symbol) to shade the area representing total consumer surplus after the tax. Then, use the purple point (diamond symbol) to shade the area representing total producer surplus after the tax. Finally, use the black point (plus symbol) to shade the area representing deadweight loss. After Tax 100 Demand Tax Revenue A 70 60 Tax Wedge Consumer Surplus PRICE (Dollars per scooter) 40 Producer Surplus 30 Supp + 20 Deadweight Loss 0 160 320 480 640 800 980 1120 1280 1440 1600 QUANTITY (Scooters) Complete the following table by using the previous graphs to determine the values of consumer and producer surplus before the tax, and consumer surplus, producer surplus, tax revenue, and deadweight loss after the tax Note: You can determine the areas of different portions of the graph by selecting the relevant area, Before Tax After Tax (Dollars) (Dollars) Consumer Surplus Producer Surplus Tax Revenue Deadweight Loss