Please don't forget to answer the graphs and the true or false question. The drop down choices for the bottom question are : increases and then decreases, increases at a constant rate, increases by a greater and greater amount.

Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 2400 2160 1920 Laffer Curve 1680 1440 1200 TAX REVENUE (Dollars) 960 720 480 240 0 0 10 20 30 40 50 60 70 80 90 TAX (Dollars per bottle) Suppose the government is currently imposing a $60-per-bottle tax on vodka. True or False: The government can raise its tax revenue by increasing the per-unit tax on vodka. True False Consider the deadweight loss generated in each of the following cases: no tax, a tax of $40 per bottle, and a tax of $80 per bottle. On the following graph, use the black curve (plus symbols) to illustrate the deadweight loss in these cases. (Hint: Remember that the area of a triangle is equal to - X Base X Height. In the case of a deadweight loss triangle found on the graph input tool, the base is the amount of the tax and the height is the reduction in quantity caused by the tax.)Suppose the government is currently imposing a $60perbottle tax on vodka. True or False: The government can raise its tax revenue by increasing the perunit tax on vodka. 7\"; True \"f? False Consider the deadweight loss generated in each of the following cases: no tax, a tax of $40 per bottle, and a tax of $80 per bottle 0n the following graph, use the black curve (plus symbols) to illustrate the deadweight loss in these cases. (Hint: Remember thai triangle is equal to % X Base X Height. In the case of a deadweight loss triangle found on the graph input tool, the base is the an the height is the reduction in quantity caused by the tax.) 2400 2180 if 1920 _ Deadweight L055 1650 1440 1200 960 -- 7'20 DEADWEIGHT LOSS (Dollars) 240 0 1llllllllll 0 '10 20 30 40 50 60 70 80 90 100 TAX (Dollars per bottle) As the tax per bottle increases, deadweight loss 7 . 4. The Laffer curve Government-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections. To understand the effect of such a tax, consider the monthly market for vodka, which is shown on the following graph. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey eld will change accordingly. Graph Input Tool 100 Market for Vodka 90 | Quantity 48 (Bottles) 80 1:? Demand Price Supply Price % 70 (Dollars per bottle) 60'00 (Dollars per battle) \"'00 .0 c 60 Tax 3 (Dollars per bottle) \"'00 E E 50 3 Q 40 LIJ Q 30 n: '1' 20 1o 0 0 12 24 36 48 60 72 84 96 108120 QUANTITY (Bottles) Suppose the government imposes a $20-perbottle tax on suppliers. At this tax amount, the equilibrium quantity of vodka is bottles, and the government collects $ in tax revenue. Now calculate the government's tax revenue if it sets a tax of $0, $20, $40, $50, $60, $80, or $100 per bottle. (Hint: To nd the equilibrium quantity after the tax, adjust the \"Quantity\" eld until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically