Question

The supply of tablet computers is linear and upward sloping, and the demand for tablet computers is linear and downward sloping. Suppose the government imposes a per-unit tax in the market for tablet computers. In this market, the tax decreases consumer surplus by $5,500.00, and it decreases producer surplus by $3,000.00. The tax decreased the equilibrium quantity of the good by 1,000.00 tablet computers , and it generated a deadweight loss of $2,500.00. The tax revenue generated by this tax is $

Answer 1

Answer:

$6000

Explanation:

Tax revenue = loss in consumer surplus + loss in producer surplus - deadweight loss

= 5500 + 3000 - 2500

=$6000