Draw a supply and demand graph for cookies, showing the equilibrium price and quantity. On the same graph, assume that the government imposes a $5 tax on cookies. Show on the graph the following:
• what happens to the price paid by the buyers,
• what happens to the price received by the sellers,
• the size of the tax,
• what happens to the quantity sold,
• what the consumer surplus is after the tax,
• what the producer surplus is after the tax,
• what the government tax revenue is after the tax, and
• what the deadweight loss is after the tax