Draw a Supply-Demand Diagram for Chocolate

question 122

Essay

Draw a supply-demand diagram for chocolate. On the diagram, show the equilibrium before and after the imposition of a tax. Now identify areas corresponding to each of the following:
a. consumer surplus before the tax
b. producer surplus before the tax
c. total surplus before the tax
d. consumer surplus after the tax
e. producer surplus after the tax
f. total surplus after the tax
g. tax revenue
h. deadweight loss

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