Tax Incidence: Welfare Calculations and Deadweight Loss - With Tax (algo) Given the following diagram: Tax Incidence 1. GRAPH Surplus Measures Of SETTINGS Reset ($) Price Tax imposed on: Supply Demand $90.00 80 Excise Tax (0 - $20) 0.00 70 Demand 60 Perfectly Relatively 50 S Inelastic Elastic $50.00 Relatively Elastic 40 Supply 30 Less Perfectly Elastic Elastic 20 Perfectly Elastic 10 EEECALCULATIONS 0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Quantity (thousands per week) Price Paid Quantity No Tax $50.00 4,000 With Tax $50.00 Instructions: Set demand relatively inelastic such that the X intercept of the demand curve is 6 (this corresponds to a vertical intercept of 150), supply relatively elastic such that the vertical intercept is $10, and impose a $16 excise tax on buyers. Use the Surplus Areas switch above the graph as needed. a. With this tax, what is the total amount buyers pay for each unit? $ (Report your answer to two decimal places) b. With this tax, what is the equilibrium quantity? units (Report your answer as a whole number) c. What is the amount of the consumer surplus? $ (Round your answer to a whole number) d. What is the amount of the producer surplus? $ (Round your answer to a whole number) e. How much consumer and producer surplus is transferred to the government as tax revenue? $ (Round your answer to a whole number) f. What is the total amount of economic surplus? $ (Round your answer to a whole number) g. What is the amount of the deadweight loss? $ (Report your answer as a whole number)