The supply curve and the demand curve for widgets are straight lines. suppose the equilibrium quantity in the market for widgets is 200 per month when there is no tax. then a tax of $5 per widget is imposed. the price paid by buyers increase by $2 and the after-tax price received by sellers falls by $3. the government is able to raise $750 per month in revenue from the tax. the deadweight loss from the tax is…

Dead weight loss==$ 125.

Explanation:

Dead weight loss from the tax=

where

= Amount of tax imposed per unit.

= Quantity demanded before tax

= Quantity demanded after tax

∵ =$5

= $ 200.

 is computed as:

=

=$150.

∴ Dead weight loss==$ 125.

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