1.Effects of a Higher Fish Tax. In Figure 21.10 on page 478, suppose the fish tax is $2 per pound of fish instead of $1. Draw a graph to show the effect of the $2 tax. In the new equilibrium, the...

1.Effects of a Higher Fish Tax. In Figure 21.10 on page 478, suppose the fish tax is $2 per pound of fish instead of $1. Draw a graph to show the effect of the $2 tax. In the new equilibrium, the price is $ _________, the quantity is _________, and the deadweight loss from the tax is $ _________.

2. Tax Eliminates a Market? Use a supply and demand graph to show a situation in which a tax on no. 3 pencils reduces the equilibrium quantity of no. 3 pencils to zero.