The supply curves of three branches of Great Power are given by the following equations:

i. Q1 = - 200 + 2P

ii. Q2 = - 500 + 2.5P

iii. Q3 = - 1000 +2P

Where Q is the quantity (in 1000s of electric kilowatts) supplied, and P is the price per kilowatt.

The demand curves of three companies that consume electricity from the three branches of Great Power are given by the following equations:

i. Q1 = 4000 -2P

ii. Q2 = 3000 - 3P

iii. Q3 = 600 - 2P

Suppose now that the government introduces a tax of $30 per kilowatt to discourage Great Power from supplying electricity from coal and petroleum. Using the same graph as for 2A to 2F, answer the following questions.

G. How much revenue does the government raise with the tax?

H. How do consumer and producer surpluses change due to the tax?

I. What is the deadweight loss associated with the tax?

J. As a public manager, advise our society and our government about whether or not to keep/increase/decrease the tax. Base your advice on the criterion of (i) allocative efficiency and (ii) the elasticity of demand and supply curves in the graph.