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Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax
Suppose the government imposes an excise tax on electric scooters. The black line on the following graph shows the tax wedge created by a tax of $160 per scooter. 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 purpie 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. Consider the market for electric scooters. The following graph shows the demand and supply for electric scooters before the government imposes any taxes. First, use the black point ( lus symbol) to indicate the equilbrium price and quantity of electric scooters 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
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