suppose a tax of $5.00 per unit is imposed on a good, and the tax causes the equilibrium of the good to decrease from 200 units to 100 units.

suppose a tax of $5.00 per unit is imposed on a good, and the tax causes the equilibrium of the good to decrease from 200 units to 100 units. The tax decreases consumer surplus $800 and decrease producer surplus by 700. The deadweight lossd from the tax is