Question 2QuestionThe graph above shows the market for good X The letters in the graph denote the enclosed areas If the government imposes an excise tax of t dollars on each unit of good X, which of the following represents the consumer surplus, producer surplus, and deadweight loss after the imposition of the tax?ResponsesConsumer Surplus: AProducer Surplus: GDeadweight Loss: D+EConsumer Surplus: A Producer Surplus: G Deadweight Loss: D+EConsumer Surplus: AProducer Surplus: F+EDeadweight Loss: D+EConsumer Surplus: A Producer Surplus: F+E Deadweight Loss: D+EConsumer Surplus: A+BProducer Surplus: G+F+EDeadweight Loss: C+DConsumer Surplus: A+B Producer Surplus: G+F+E Deadweight Loss: C+DConsumer Surplus: A+B+HProducer Surplus: G+FDeadweight Loss: D+EConsumer Surplus: A+B+H Producer Surplus: G+F Deadweight Loss: D+EConsumer Surplus: A+B+HProducer Surplus: G+F+CDeadweight Loss: E

Let suppose that market for wheat is in equilibrium. Show it with help of graph bymentioning equilibrium price and quantity, consumer surplus and producer surplus. Howdoes a tax on the production of wheat affect the price paid by buyers, the price receivedby sellers, and the quantity sold? Also mention tax revenue received by Govt. and deadweight loss of the tax. Who will bear more burden of the tax? On which it depends upon?Explain all these points with the help of graph

Consider the welfare effects that result from the industry operating as a competitive market versus a monopoly.On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody.Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome.In the following table, enter the price and quantity that would arise in a competitive market; then enter the profit-maximizing price and quantity that would be chosen if a monopolist controlled this market.Market StructurePriceQuantity(Dollars)(Gyros)Competitive Monopoly Given the summary table of the two different market structures, you can infer that, in general, the price is higher under a    , and the quantity is higher under a    .

Question 2 Let QD = 80 − 20P be the demand function for cigarettes and let QS =10P − 10 be the supply. Suppose the government introduces a specific tax of τ = 1 to belevied on the producers• Obtain the new supply curve.• Determine the equilbrium quantity and price under the tax.• Compute the government revenue.• Compute the incidence (burden) on the consumers.• Compute the incidence (burden) on the producers.• Compute the deadweight loss.• Draw a diagram with all your analysis

The vertical distance between points A and B represents a tax in the market.​Refer to Figure 8-2. The loss of producer surplus as a result of the tax isGroup of answer choices$1.$2.$3.$4.

Assume that demand is perfectly elastic and supply is upward sloping. If a specific tax is imposed on sellers then following the imposition of the tax:Group of answer choicesProducer surplus is equal to zero.Consumer surplus is equal to zero.The total price paid by buyers will increase.The price received and kept by sellers remains unchanged.b, c and d are correct.