(Solved): 1. Understanding the implications of taxes on welfare The following graph represents the demand and ...

1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. Complete the following table, given the information presented on the graph. In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply.