. Suppose the government of X has decided to tax pizzas. Currently 400,000 pizzas are sold every day. Three possible taxes are being considered: a 20-cent per pizza tax, which would decrease pizza sales by 60,000 per day; a 25-cent per pizza tax, which would decrease pizza sales by 80,000 per day; and a 50-cent per pizza tax, which would decrease pizza sales by 120,000 pizzas per day.

1. Calculate the amount of tax revenue generated by each tax
2. Calculate the deadweight loss caused by each tax.
3. If the goal of your state government is simply to raise the most tax revenue, which tax is preferable?
4. If the goal of your state government is to raise tax revenue in the most efficient manner (with the least deadweight loss per dollar of revenue), which tax is preferable?