Problem
For the linear demand function x = a - bp calculate the deadweight loss of introducing a commodity tax t when the marginal cost of production is constant at c. How is the deadweight loss affected by changes in a and b? How does a change in b affect the elasticity of demand at the equilibrium without taxation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.