Question 5 (20 points) Consider the market for good X represented in the diagram below. Initially, the equilibrium price for good X is $6 per unit, and the equilibrium quantity is 6 units of good X . The government now puts a $4 tax. (30 points) Price $12 10 TAX Price paid = $8 B C Price received - $4 10 12 Quantity . Use the figure above to fill the following table No TAX With Tax Difference Change (increased or decreased or remained the same) Consumer Surplus Producer Surplus Social (Total) Surplus Government Tax Revenue none B+C -B-C increased b. Did the $4 tax create any deadweightloss (DWL)? If so, explain why a tax creates DWL and also show the areas that represent the DWL due to the tax on the figure above. c. Given the $4 tax, what would be the size of DWL, if the supply was more elastic than the supply curve in the figure? (Assume that there no change in the elasticity level of the demand curve |d. Given the $4 tax, what would be the size of DWL, if the demand was less elastic than the demand curve in the figure? (Assume that there no change in the elasticity level of the supply curve)