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1. Understanding the implications of taxes on welfare

The following graph represents the demand and supply for blinkies (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.

A graph plots supply and demand for blinkies with price in dollars per blinkie on the y-axis and quantity of blinkies on the x-axis. The demand curve is a straight line with y-intercept (0, $100) and the supply curve is a straight line with y-intercept (0, $10). The curves intersect at (9, $55.00), and a black plus symbol denotes the intersection. There are two grey star symbols, one along the demand curve at (6, $70.00) and one along the supply curve at (6, $40.00). A triangular area shaded green labeled A is defined by (0, $100), (6, $70.00), and (0, $70.00). A square shaded brown labeled B is defined by (6, $70.00), (0, $70.00), (0, $55.00), and (6, 55.00). A triangle shaded grey labeled C is defined by (6, $70.00), (6, $55.00), and (9, $55.00). A square shaded brown labeled D is defined by (0, $55.00), (6, 55.00), (6, $40.00), and (0, $40.00). A triangle shaded grey labeled E is defined by (6, 55.00), (6, $40.00), and (9, 55.00). A triangle shaded purple labeled F is defined by (0, $10), (6, $40.00), and (0, $40.00).

PRICE (Dollars per blinkie)QUANTITY (Blinkies)DemandSupplyABCDEF55.00940.0070.006

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

Result	Value
Equilibrium quantity before tax
Price producers receive before tax
Per-unit 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
Producer surplus after the tax is imposed
Deadweight loss after the tax is imposed

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