Suppose the government levies a tax of $2 per unit that the buyers of the good must pay. On a new graph, show and explain which curve shifts which way, derive a new equilibrium quantity, and the prices paid by buyers and received by sellers. Then show consumer surplus, producer surplus, government revenue, and the deadweight loss on the second graph. How many dollars is each of these?
Q supplied 0,2,4,6,8,10,12