Suppose the market equilibrium price for Kindles are $50 each. Using a supply and demand graph,
illustrate the effect of an addition of a $10 per-unit unit tax on Kindles (imposed on sellers), where
the entire tax incidence is equally split between buyers and sellers. Point out the following before and
after the excise tax:
a. Consumer surplus
b. Producer surplus
c. Tax revenue
d. Deadweight loss

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