Use the black points (plus symbol) to graph deadweight loss for the following tax (T) values:...

     

Transcribed Image Text:

Use the black points (plus symbol) to graph deadweight loss for the following tax (T) values: 0, 60, 120, 180, and 240. ? Deadweight Loss (Thousands of dollars) 20 18 16 14 12 10 8 co 4 2 0 0 30 60 90 120 150 T 180 210 240 The government now levies a tax on this good of $140 per unit. Which of the following statements are true? Check all that apply. Deadweight Loss The government could decrease deadweight loss by reducing the tax. The government could increase tax revenue by reducing the tax to $120. A tax of $240 would be even better in terms of the tax revenue it generates. Price 80 80-T/3 Demand 160-2T/3 160 Quantity Recall that the area of a triangle is x Base x Height. According to this graph, the base of the deadweight loss triangle is Supply and the height is 2 Use the black points (plus symbol) to graph deadweight loss for the following tax (T) values: 0, 60, 120, 180, and 240. ? Deadweight Loss (Thousands of dollars) 20 18 16 14 12 10 8 co 4 2 0 0 30 60 90 120 150 T 180 210 240 The government now levies a tax on this good of $140 per unit. Which of the following statements are true? Check all that apply. Deadweight Loss The government could decrease deadweight loss by reducing the tax. The government could increase tax revenue by reducing the tax to $120. A tax of $240 would be even better in terms of the tax revenue it generates. Price 80 80-T/3 Demand 160-2T/3 160 Quantity Recall that the area of a triangle is x Base x Height. According to this graph, the base of the deadweight loss triangle is Supply and the height is 2