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Suppose the current equilibrium price of cheese pizzas is $9.00, and 9 million pizzas are sold per month. After the federal government imposes a $4.00

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Suppose the current equilibrium price of cheese pizzas is $9.00, and 9 million pizzas are sold per month. After the federal government imposes a $4.00 per pizza tax, the equilibrium price of pizzas rises to $11.00, and the equilibrium quantity falls to 5 million. This situation is illustrated in the graph. Compare the economic surplus in this market when IS there is no tax to when there is a tax on pizza. 1.) Use the triangle drawing tool to shade in the change in economic surplus as a result of the tax. Properly label this shaded area indicating whether surplus has increased (new economic surplus) or decreased (deadweight loss). 2.) Use the rectangle drawing tool to shade in new government revenue as a result of the tax. Properly 2 4 6 8 10 12 14 16 18 20 label this shaded area. Quantity (millions of pizzas per month) Carefully follow the instructions above, and only draw

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