Central Texas College - For Stud X | wil Content X MindTap - Cengage Learning X Course Hero X + X C ng.cengage.com/staticb/ui/evo/index.html?deploymentld=59814121952542253916504548&eISBN=9780357133576&id=1998252096&snapsh.. . .. CENGAGE |MINDTAP Q Search this course ? Homework (Ch 08) X Back to Assignment Attempts Average / 4 A-Z 3. Relationship between tax revenues, deadweight loss, and demand elasticity L The government is considering levying a tax of $120 per unit on suppliers of either pickleball paddles or metro cards. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for pickleball paddles is shown by Dp (on the first graph), EI and the demand for metro cards is shown by DM (on the second graph). Suppose the government taxes pickleball paddles. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S + Tax) shifted up by the amount of the proposed tax ($120 per paddle). bongo On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for pickleball paddles. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax. ? Pickleball Paddles Market A+ 73OF Q Search x O 4:12 PM Sunny 3/1/2024 PRECentral Texas College - For Stud X | wil Content X MindTap - Cengage Learning X Course Hero X + X C ng.cengage.com/staticb/ui/evo/index.html?deploymentld=59814121952542253916504548&elSBN=9780357133576&id=1998252096&snapsh.. . .. CENGAGE | MINDTAP Q Search this course ? Homework (Ch 08) X (?) Pickleball Paddles Market A-Z 240 220 S+Tax Supply L 200 Tax Revenue 180 EI 160 Deadweight Loss 140 120 PRICE (Dollars per paddle) 100 bongo 80 DP 60 40 20 0 50 100 150 200 250 300 350 400 450 500 550 600 (? QUANTITY (Paddles) A+ 73OF 4:12 PM Q Search x O 3/1/2024 PRE SunnyCentral Texas College - For Stud X | wil Content X MindTap - Cengage Learning X Course Hero X + X C ng.cengage.com/staticb/ui/evo/index.html?deploymentld=59814121952542253916504548&eISBN=9780357133576&id=1998252096&snapsh... . .. CENGAGE | MINDTAP Q Search this course ? Homework (Ch 08) X Instead, suppose the government taxes metro cards. The following graph shows the annual supply and demand for this good, as well as the supply curve shifted up by the amount of the proposed tax ($120 per card). A-Z On the following graph, do for metro cards the same thing you did previously on the graph for pickleball paddles. Use the green rectangle (triangle symbols) to shade the area that represents tax revenue for metro cards. Then, use the black triangle (plus symbols) to shade the area that represents L the deadweight loss associated with the tax. EI Metro Cards Market 240 bongo 220 S+Tax Supply 200 Tax Revenue 180 160 Deadweight Loss 140 CE (Dollars per card) 120 ? A+ 100 1 Breaking news Q Search x O 4:12 PM Unfolding now 3/1/2024 PRECentral Texas College - For Stud X | wil Content X MindTap - Cengage Learning X Course Hero X + X C ng.cengage.com/staticb/ui/evo/index.html?deploymentld=59814121952542253916504548&eISBN=9780357133576&id=1998252096&snapsh... . .. CENGAGE | MINDTAP Q Search this course ? Homework (Ch 08) X (? Metro Cards Market A-Z 240 220 S+Tax Supply L 200 Tax Revenue EI 180 160 Deadweight Loss 140 120 PRICE (Dollars per card) 100 bongo 80 60 40 20 DM 0 0 50 100 150 200 250 300 350 400 450 500 550 600 A+ QUANTITY (Cards) 1 Breaking news 4:12 PM Unfolding now Q Search 3/1/2024 PRECentral Texas College - For Stud X | wil Content X MindTap - Cengage Learning X Course Hero X + X C ng.cengage.com/staticb/ui/evo/index.html?deploymentld=59814121952542253916504548&elSBN=9780357133576&id=1998252096&snapsh... . .. CENGAGE |MINDTAP Q Search this course ? Homework (Ch 08) X 0 50 100 150 200 250 300 350 400 450 500 550 600 QUANTITY (Cards) A-Z L Complete the following table with the tax revenue collected and deadweight loss caused by each of the tax proposals. EI Tax Revenue Deadweight Loss If the Government Taxes... (Dollars) (Dollars) Pickleball paddles at $120 per paddle Metro cards at $120 per card bongo Suppose the government wants to tax the good that will generate more tax revenue at a lower welfare cost. In this case, it should tax because, all else held constant, taxing a good with a relatively elastic demand generates larger tax revenue and smaller deadweight loss. Grade It Now Save & Continue (? Continue without saving A+ 1 Breaking news Unfolding now Q Search 9 (x O 4:12 PM 3/1/2024 PRE