Text Box Shape PictureThe The Tower Avense Concert Hall is one of WASIR\'s rowdiest live music venses Comoerts featuring rock, rap, technio are held and sometimes even the country folk gather there for a grand ol\'time. However when these events conelude, unruly throngs spill into the streets abounding with lewdness, littering, fighting and ve andalism. Centralia and it citinens have loeng felt that this vene has not paid the full cost of its events and supports a 53 per ticket coneert tax in order to achieve the social demand the demand for coneerts by not just fans but neighbors would be incorporated into the new ticket prioe which esplains a big part of venue\'s popularity (Si does not mean St happens first Prior to the S3 per ticket tas a typical concert coneert goens a Consumer sarplus is approximated by triangle S-bys by Q--, Producer surplas is approximated hy triangles by s__byQ. Societal surplus is approximated by triangle S by S by Q-. With the new patron tas, the typicall coneert ow attracts 6 Now consumer surplus is appeusimabed by triangle S-byS_ by Q- S1 3500 n coneert goens p)Now producer surplus is appruunated by triangle s__ by S by Q- S Now societal surplus is approximated by triangle SbySby Q g The loss in societal surplas due to the tas is approximated by a dumpster shaped area bound by S by S by by soTotal tax revenues equal S- .hint S3 per patron +·of patrunsajirr the
1)Prior to the $3 tax, a typical concert attracts more concert goers
2)The original equilibrium price is 3.So the consumer surplus is the is the triangle that connects the point 3,7 and the intersection of demand and supply
3)The producer surplus is the area below the equilibrium, that is the triangular area that connects1,3,2000 and the intersection between s1 and demand
4)The societal surplus is 1,7 and the intersection of D and s1
5)With the tax, the concert acttracts1000 concert goers
6)Now consumer surplus is the triangle connecting 5,7 and the intersection of D and s1 curve
7)Producers surplus is the triangle of 5,4 and the intersection of D and s1
8)Now the societal surplus is 7,4 and the intersection of s1 and D
9)The loss in societal surplus is approximated by the area 4,3 the intersection of D and s1 and the intersection of D and S2
10)Total tax revenue is 1000*3=3000 $
11)A free outdoor concert will have 3500 patrons
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