Example: analysis of a tax P A. Compute: CS, PS, and total surplus B. Now, a...

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Example: analysis of a tax P A. Compute: CS, PS, and total surplus B. Now, a 100 tax is charged per ticket. Compute: CS, PS, tax revenue, total surplus, and DWL 400 350 300 250 200 150 100 50 0 0 The market for airplane tickets 25 50 S D 75 100 125 o Example: analysis of a tax P A. Compute: CS, PS, and total surplus B. Now, a 100 tax is charged per ticket. Compute: CS, PS, tax revenue, total surplus, and DWL 400 350 300 250 200 150 100 50 0 0 The market for airplane tickets 25 50 S D 75 100 125 o

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