With the use of a diagram, show the consequences of a tax on the different stakeholders (consumers, producers, government). Don’t forget to show tax burden on consumers, on producers, and tax revenue.

I can't create diagrams directly, but I can describe how you can create a simple diagram to illustrate the consequences of a tax on consumers, producers, and the government.

Diagram Description:

Vertical Axis: Price (P) and Quantity (Q).

Horizontal Axis: Quantity (Q).

Now, let's illustrate the effects of a tax:

Step 1: Start with a supply and demand graph without a tax, where the supply curve intersects the demand curve at the equilibrium price (P_eq) and equilibrium quantity (Q_eq). This represents the market before the tax is imposed.

Step 2: Draw a vertical line representing the amount of the tax (T) directly above the equilibrium price (P_eq). This is the tax per unit.

Step 3: The new price for consumers (P_c) will be higher than the old equilibrium price (P_eq) by the amount of the tax (T). Draw a dotted line parallel to the demand curve from the new price (P_c) to the vertical tax line.

Step 4: The new price for producers (P_p) will be lower than the old equilibrium price (P_eq) by the amount of the tax (T). Draw a dotted line parallel to the supply curve from the new price (P_p) to the vertical tax line.

Step 5: Find the new equilibrium quantity (Q_new) where the demand curve intersects the supply curve after the tax is imposed. This quantity will be lower than the old equilibrium quantity (Q_eq).

Step 6: Shade the area between the new price for consumers (P_c) and the new price for producers (P_p) to represent the tax burden on consumers.

Step 7: Calculate the tax revenue (T * Q_new). This represents the government's income from the tax.

Here's what you'll have in the diagram:

Tax burden on consumers (the area between P_c and P_eq).

Tax burden on producers (the area between P_eq and P_p).

Tax revenue (T * Q_new).

This diagram will visually represent the consequences of the tax on consumers, producers, and the government.