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The question asks you to identify and shade areas representing **tax revenue** and **deadweight loss** in the market for pickleball paddles after a government-imposed tax of $120 per paddle. Let me walk you through the process of identifying these regions.

### Key Graph Features:
- **Supply Curve**: This is the original supply curve without the tax.
- **S + Tax Curve**: This is the supply curve shifted upwards by $120 due to the tax.
- **Demand Curve ($D_P$)**: This represents the demand for pickleball paddles.

### Steps to Determine Tax Revenue and Deadweight Loss:

1. **Tax Revenue**:
   - **Formula**: Tax revenue is calculated as the amount of the tax ($120) multiplied by the number of paddles sold after the tax is imposed (new equilibrium quantity).
   - **Shading the area**: 
     - On the graph, this is the **rectangle** between the **S + Tax** and **Supply curves** at the new quantity sold.
     - The height of the rectangle is $120 (the amount of tax per unit), and the width is the number of paddles sold in the market after the tax.
     - The graph suggests using **green symbols (triangle)** to shade this region.

2. **Deadweight Loss**:
   - **Definition**: Deadweight loss represents the loss in total welfare that results because the tax causes a reduction in the quantity of paddles sold (compared to the pre-tax equilibrium).
   - **Shading the area**:
     - On the graph, the deadweight loss forms a **triangle** to the right of the new equilibrium (new quantity sold after tax).
     - It is located between the **S + Tax** curve and the **Demand curve**.
     - The deadweight loss is marked using **black symbols (plus)**.

Now, if you'd like to proceed, you can shade those areas directly on the graph as instructed.

Would you like further clarification on any part of this? Here are some related questions to deepen your understanding:

1. How does the size of the deadweight loss change with a higher tax?
2. What happens to the tax revenue if the tax is raised too high?
3. Can deadweight loss ever be reduced to zero?
4. How does elasticity of demand affect tax incidence on consumers?
5. What is the impact of the tax on consumer surplus and producer surplus?

**Tip**: The deadweight loss arises because taxes reduce the equilibrium quantity traded in the market, leading to inefficiency.

The government is considering levying a tax of $120 per unit on suppliers of either pickleball paddles or metro cards. The supply curve for each of these two goods is identical, as you can see on each of the following graphs. The demand for pickleball paddles is shown by D_P (on the first graph), and the demand for metro cards is shown by D_M (on the second graph). Suppose the government taxes pickleball paddles. The following graph shows the annual supply and demand for this good. It also shows the supply curve (S + Tax) shifted up by the amount of the proposed tax ($120 per paddle). On the following graph, use the green rectangle (triangle symbols) to shade the area that represents tax revenue for pickleball paddles. Then use the black triangle (plus symbols) to shade the area that represents the deadweight loss associated with the tax.

Learn how to calculate tax revenue and deadweight loss in the market for pickleball paddles after a government-imposed tax of $120 per paddle. This includes understanding the supply and demand curves, and how taxes impact market equilibrium, using concepts from welfare economics and tax incidence.

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