In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is typical downward-sloping straight line. The equilibrium quantity in the market for widgets is $200$ per month when there is no tax. Then a tax $\$5$ per widget is imposed. The price paid by buyers increases by $\$2$ and the after-tax price received by sellers falls by $\$3$. The government can raise $\$750$ per month in the tax. The dead weight loss from the tax is:

Given,

Equilibrium quantity $=\$200$ per month

Tax amount $=\$5$

Tax revenue $=\$750$

Let, the new equilibrium quantity (after tax) be $y$,Equilibrium quantity $=\$200$ per month

Tax amount $=\$5$

Tax revenue $=\$750$

$$\implies $5 \times y=\$750 \\ \therefore y=\frac{750}{5}=150$$

#### Dead-Weight Loss

Dead-Weight Loss (DWL) is give by,

$$DWL= \ Area \ of \ triangle \ ABC \\ =\frac{1}{2} \times Base \times Height \\ =\frac{1}{2} \times (200-150) \times (5) \\ =125$$