Chapter 8 - Part III - Application: The Costs of Taxation - Problems and Applications - Page 170: 9

a) 9,000 dollars in tax revenue, and 500 dollars in deadweight loss b) 16,000 dollars in tax revenue, and 2,000 dollars in deadweight loss. The tax revenue was less than double, and the deadweight loss more than doubled.

a) $(108-98)*900$ $10*900$ $9000$ $(108-98)*(1000-900)*1/2$ $10*100*1/2$ $10*50$ $500$ b) $(116-96)*(800)$ $20*800$ $16000$ $(116-96)*(1000-800)*1/2$ $20*200*1/2$ $20*100$ $2000$