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If we consider the supply and demand for gizmos to be as follows : Ps =...

If we consider the supply and demand for gizmos to be as follows : Ps = 2Qs + 50 Supply Equation

Pd = 150 – 3Qd Demand Equation

  1. If the government imposes a tax (Pt) of $6 on each gizmo, what is the deadweight loss (DWL)?

  2. Given your answer in d, what is the social surplus lost due to the tax?

  3. Compute the leakage of the tax imposition?

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