Suppose the government is currently imposing a $15-per-case tax on wine. True or False: The government can raise its tax revenue by decreasing the per-unit tax on wine. True O FalseGovernment-imposed taxes cause reductions in the activity that is being taxed, which has important implications for revenue collections. o understand the effect of such a tax, consider the monthly market for wine, which is shown on the following graph. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool 50 Market for Wine 45 Supply Quantity 32 (Cases) 40 Demand Price 30.00 Supply Price 20.00 35 (Dollars per case) (Dollars per case) 30 Tax 10.00 (Dollars per case) 25 PRICE (Dollars per case) 15 Demand 10Suppose the government imposes a $10-per-case tax on suppliers. At this tax amount, the equilibrium quantity of wine is cases, and the government collects $ in tax revenue. Now calculate the government's tax revenue if it sets a tax of $0, $10, $20, $25, $30, $40, or $50 per case. (Hint: To find the equilibrium quantity after the tax, adjust the "Quantity" field until the Tax equals the value of the per-unit tax.) Using the data you generate, plot a Laffer curve by using the green points (triangle symbol) to plot total tax revenue at each of those tax levels. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.\fConsider the deadweight loss generated in each of the following cases: no tax, a tax of $20 per case, and a tax of $40 per case. On the following graph, use the black curve (plus symbols) to illustrate the deadweight loss in these cases. (Hint: Remember that the area of a triangle is equal to : x Base x Height. In the case of a deadweight loss triangle found on the graph input tool, the base is the amount of the tax and the height is the reduction in quantity caused by the tax.)720 Deadweight Loss 640 580 480 40 DEADWEIGHT LOSS (Dollars) 320 240 180 80 0 5 10 15 20 25 30 35 40 45 50 TAX (Dollars per case)0 5 10 15 20 25 30 3 increases by a greater and greater amount TAX (Dollars per case) increases at a constant rate increases and then decreases s the tax per case increases, deadweight loss