STEP: 2 of 2 Suppose that a market is described by the following supply and demand equations: Qs = 2P QD = 180 - P Suppose that a tax of T is placed on buyers, so the new demand equation is as follows: QD = 180 - (P + T) The new equilibrium price is now P = 60 - , and the new equilibrium quantity is Q = 120 - 21. Tax revenue is T x Q. Use the green points (triangle symbol) to graph tax revenue for the following tax (T) values: 0, 30, 60, 90, 120, 150, and 180. AUse the green points (triangle symbol) to graph tax revenue for the following tax (T) values: 0, 30, 60, 90, 120, 150, and 180. A 5 Laffer Curve Tax Revenue (Thousands of dollars) 2 1 30 60 90 120 150 180 210 240 270 300 The following graph shows the old and new equilibrium information and how the deadweight loss of a tax is the area of the triangle between the supply and demand curves:The following graph shows the old and new equilibrium information and how the deadweight loss of a tax is the area of the triangle between the supply and demand curves: Demand Supply Price 60 60-T/3- 120-2T/3 120 QuantityRecall that the area of a triangle is - x Base x Height. According to this graph, the base of the deadweight loss triangle is _, and the height is V T Use the black points (plus symbol) to graph deadweight loss for the tax (T) values: 0, 60, 90, 120, and 180. 60 + 2T 3 60 - T 2T 20 18 16 Deadweight Loss 14 Deadweight Loss (Thousands of dollars) Co N 0 30 50 120 150 18020 + 18 Deadweight Loss 16 14 Deadweight Loss (Thousands of dollars) ") . N 30 60 90 120 150 180 The government now levies a tax on this good of $100 per unit. Which of the following statements are true? Check all that apply. The government could increase tax revenue by reducing the tax to $90. The government could decrease deadweight loss by reducing the tax. A tax of $180 would be even better in terms of the tax revenue it generates