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Please help me understand the right steps. Thank you. 4. The Laffer curve Government-imposed taxes cause reductions in the activity that is being taxed, which

Please help me understand the right steps. Thank you.

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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 monthlyr market for champagne, which is shown on the following graph. Use the graph lnput tool to help you answer the following guestlons. You we'll not be graded on any changes you make to this graph. Note: Once you enter a value in a white eld, the graph and an'iur corresponding amounts in each greyeld will change accordingly. Graph Input Tool 6') Market for Champagne .- Dezo 82:13:53 7 \\ A Demand Price Supply Price a (Dollars per case) 313.09 (Dollars per case) 20.130 IRJ (Dollars per case) Will] 0 9,. 2:] -----+ I L\" I o l E 15 I emand t I 10 I 5 I 121324303642435463 oUANTITvloaaes] Suppose the government imposes a $10-percase tax on suppliers. At this tax amount, the equilibrium quantity of champagne is |:| cases. and the government collects in tax revenue. New calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $561 per case. (Hint: To find the equilibrium quantity after the tax, adjust the "Quentin.\" eld untilr the Tax equals the value of the per-unit tart}I Using the data you generate, plot a taffer curve by using the green points (triangle symbol) to plot tcrtaaI tax revenue at each of these tax levels. Note: Plot your points in the orderin which you would like them connected. Line segments Inill connect the points automatically. C?) 660 . 540 Laer Cu we 43:] 4. M D to 8 TAX REVENUE (Dollars) to 8 I: Trqqqqqqaqqa 24C! 130 120 5101520253035404550 TAX {Dollars per case) Suppose the government is currently imposing a $15percase tax on champagne. True or False: The government can raise its tax revenue by increasing the perunit tax on champagne. 0 True O False Consider the deadweight less generated in each of the following cases: no tax, a tax of $20 per case, and a tax of $40 per case. On the folfewing graph, use the black curve (plus symbols) to Illustrate the deadwel'ght less in these cases. (Hint: Remember that the area of a tn'angle is equal to g x Base x Height. In the case of a deadweight lass 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.) sue - Deadweight Less 430 420 350 300 24C! 18C! DEADWEIGHT LOSS (Dollars) 120 a 5 1o 15 20 25 so Increasesandthenclecreases TAX [Dollars per case) increases by a greater and greater amount increases at a constant rate As the tax per case increases, deadweight less 7

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