On the small sovereign and proud island-nation of Mypos there is a competitive market for feta cheese and there are no other markets. Demand (in units of 1000) is Qd = 12 2p and supply is Qs = 4 + 2p. The citizens want to erect a statue to honor their most famous citizen Balki. The statue costs $15,000 and at a community meeting the citizens decide they are willing to pay up to $19,000 for this statue. The only way to raise revenue is to impose a per-unit tax on feta cheese producers. Should the statue be built? Follow the steps below to answer the question.

i. In words, what is the benefit of erecting the statue? What is the cost? ii. Express the supply curve including the tax t iii. Find the equilibrium quantity in terms of tax t iv. Find the tax revenue in terms of tax t. How large must the tax be to raise the $15,000? v. Find the deadweight loss in terms of tax t. What is the deadweight loss associ- ated with the tax found above? Is this deadweight loss bigger or smaller than the benefit of building the statue?