Q Sea CENGAGE | MINDTAP HW: Application: The Costs of Taxation Assignment Consider the market for air conditioning units. The following graph shows the demand and supply for air conditioning units before the government imposes any taxes. First, use the black point (plus symbol) to indicate the equilibrium price and quantity of air conditioning units 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 300 .+ 270 Equilibrium 240 Demand A 210 Consumer Surplus 180 PRICE (Dollars per air conditioner) 150 120 Producer Surplus Supply 90 60 30 0 0 40 80 20 160 200 240 280 320 400 QUANTITY (Air conditioners) Suppose the government imposes an excise tax on air conditioning units. The black line on the following graph shows the tax wedge created by a tax"I. CENGAGE MlNDTAP HW: Application: The Costs of Taxation Assignment Suppose the government imposes an excise tax on air conditioning units. The black line on the following graph shows the tax wedge created by a tax of $60 per air conditioner. 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 300 270 240 Demand N o 150 Tax Wedge 120 Sunply PRICE (Dollars per air conditioner) (D o o) o w o I 0 40 80 120 160 200 240 280 320 QUANTITY (Air conditioners) 360 400 Tax Revenue A Consumer Surplus 0 Producer Surplus Deadweight Loss x (30 Q Search this cc HW: Application: The Costs of Taxation Assignment X Demand A 210 180 Consumer Surplus 150 Tax Wedge PRICE (Dollars per air condition 120 Supply Producer Surplus 90 Deadweight Loss 30 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Air conditioners) 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 o o Deadweight Loss Grade It Now Save & Continue Continue without saving