Question Suppose a commodity tax is levied on a product. The supply curve is linear and upward sloping and the demand curve is linear and downward sloping. The tax lowers the consumer surplus by $300 and lowers the producer surplus by $200. The deadweight loss is $50. The government tax revenue is $[Answer]. Now, suppose we learned that the tax rate is $10 per unit. The equilibrium quantity after the tax must be [Answer]. Consequently, we conclude that the equilibrium quantity traded before the tax must be [Answer]. (In decimal numbers, with two decimal places, please.)

5LWUVD The Asker · Economics

Suppose a commodity tax is levied on a product. The supply curve is linear and upward sloping and the demand curve is linear and downward sloping. The tax lowers the consumer surplus by $300 and lowers the producer surplus by $200. The deadweight loss is $50. The government tax revenue is $[Answer]. Now, suppose we learned that the tax rate is $10 per unit. The equilibrium quantity after the tax must be [Answer]. Consequently, we conclude that the equilibrium quantity traded before the tax must be [Answer].

(In decimal numbers, with two decimal places, please.)

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ROJUKS

The reduction in CS and PS due to tax is also equal to the sum of revenue and deadweight loss. If the sum of loss in CS and PS is (300+200)=500 and DWL is 50 , the government revenue is 500-50=$450.The government tax revenue is $[450].Now, suppose we learned that the tax rate is $10 per unit. Revenue is tax * quantit ... See the full answer