The demand and supply functions for pens with a tax imposed on the buyers are given by:

Qd= 92-4(Ps-Tax)

Qs= -168+12Ps

Q=Qd=Qs

The price to the buyer was initially $16 and $1.00 tax. However, the government decided to raise the tax to $2.00 for this amount. This caused a drop in the quantity sold from the initial Q = 24.

Assume that T = $2.00

What is the deadweight loss of the tax?

a. 0b. 1c. 2d. 3