Reference no: EM131642881

Question: Suppose the current equilibrium price of a quarter-pound hamburger is $5, and 10 million quarter-pound hamburgers are sold per month. After the federal government imposes a tax of $0.50 per hamburger, the equilibrium price of hamburgers rises to $5.20, and the equilibrium quantity falls to 9 million. Illustrate this situation with a demand and supply graph. Be sure your graph shows the equilibrium price before and after the tax; the equilibrium quantity before and after the tax; and the areas representing consumer surplus after the tax, producer surplus after the tax, tax revenue collected by the government, and deadweight loss.