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Refer to figure and answer the following questions: Calculate the consumer surplus and producer surplus and...

A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from (0, 0) to (72, 36), and a demand curve, D, descending linearly from (0, 36) to (72, 0). The curves intersect at (36, 18).

Refer to figure and answer the following questions:

  • Calculate the consumer surplus and producer surplus and total surplus at the equilibrium.
  • If the government imposes a $6 tax per unit then what will be the new consumer surplus, new producer surplus and total surplus?
  • Did the government gain something after the taxes are imposed? If yes, calculate the amount.
  • Is there any deadweight loss after the taxes? If yes calculate the amount and explain why it occurred?
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