/ Suppose the market for movies on DVD is perfectly competitive and the market price is $15 per DVD. Now assume the government decides to put a $3 tax on each DVD sold, and as a result of this policy change, consumers must pay a total of $16 to buy a DVD.

A. What share of the tax are consumers paying?

B. What share of the tax are producers paying?

C. On a graph clearly label the areas on the graph that represent consumer surplus, producer surplus, tax incidence on consumers, tax incidence on producers, and deadweight loss before and after the tax.