Suppose the nation of Isoland is an importer of textlies and is looking for a way to raise government revenue, The following graph shows the effect of a tariff on textlle imports. Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced textlles). Under a textile consumption tax, the quantity of textiles consumed in Isoland wilt be the quantity consumed under a tariff, and the quantity produced in Isoland will be the quantity produced under a tariff. The following table shows the effect of an import tariff on the nation of isoland. Complete the remaining columns of the following table by indicating the effect of the same-sized tax on textile consumption. Compared to the consumption tax, the tariff raises. revenue for the government and has deadweight loss associated with it..

1. Suppose the nation of Isoland is an importer of textlies and is looking for a way to raise
government revenue, The following graph shows the effect of a tariff on textlle imports.
Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering
the same-sized tax on textile consumption (including both imported and domestically produced
textlles). Under a textile consumption tax, the quantity of textiles consumed in Isoland wilt be
the quantity consumed under a tariff, and the quantity produced in Isoland will be the quantity
produced under a tariff. The following table shows the effect of an import tariff on the nation of
isoland. Complete the remaining columns of the following table by indicating the effect of the
same-sized tax on textile consumption. Compared to the consumption tax, the tariff raises.
revenue for the government and has deadweight loss associated with it.