Question

 The following graph represents the demand and supply for pinckneys (an imaginary product). The black point (plus symbol) Indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) Indicate the after-tax scenario.

Complete the following table, given the information presented on the graph. 

Result	Value
Price consumers pay before tax
Per-unit tax
Equilibrium quantity before tax

In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply.

Concept	A	B	C	D	E	F
Consumer surplus before the tax is imposed
Deadweight loss after the tax is imposed
Producer surplus after the tax is imposed

Answer 1

Equilibrium quantity before tax = 16

Per unit tax = 21-15 = 6

Price producers receive after tax = 15

DWL after tax = C+E

CS after tax = A

PS before tax = D+E+F