Consider the market of good A. The equilibrium price was P = 20. Then, government levied a per-unit tax of 5 on A. In the after-tax equilibrium, the deadweight loss was 10 and buyer’s tax incidence was 1. Then, the government changed the tax; now, government levied a per-unit tax of a certain size on A, and seller’s tax incidence was 3 in the equilibrium with this new tax. Choose correct math symbols for the size of the new tax and the deadweight loss in the equilibrium with the new tax. Size of new-tax ( < , = , > ) 5 Dead weight loss (< , = , > ) 10
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