# HDTV Price $1 2000 a. Suppose the government imposes a$300 per unit tax. Find the...

###### Question:

HDTV Price $1 2000 a. Suppose the government imposes a$300 per unit tax. Find the tax wedge on the graph. What is the equilibrium quantity and price under this tax policy? 1800 1600 1400 1200 1000 800 600 b. What is CS, PS, and TS in this market under the $300 per unit tax? 400 2003 0 2 3 4 5 6 7 8 9 10 HDTV Quantity (in 1,000s) c. How much efficiency is loss as the result of the$300 per unit tax? Show your numerical answer as well as draw on the graph the area of DWL.

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