▁the ▁square ▁of ▁the ▁tax ▁increase . ▁This ▁means ▁that ▁when ▁the ▁size ▁of ▁a ▁tax ▁doubles , ▁the ▁base ▁and ▁height ▁of ▁the ▁triangle ▁double . ▁Thus , ▁dou bling ▁the ▁tax ▁increases ▁the ▁dead weight ▁loss ▁by ▁a ▁factor ▁of ▁ 4 . ▁ ▁The ▁varying ▁dead weight ▁loss ▁from ▁a ▁tax ▁also ▁affect ▁the ▁government ' s ▁total ▁tax ▁re venue . ▁Tax ▁re venue ▁is ▁represented ▁by ▁the ▁area ▁of ▁the ▁rectangle ▁between ▁the ▁supply ▁and ▁demand ▁curves . ▁When ▁a ▁low ▁tax ▁is ▁lev ied , ▁tax ▁re venue ▁is ▁relatively ▁small . ▁As ▁the ▁size ▁of ▁the ▁tax ▁increases , ▁tax ▁re venue ▁exp ands . ▁However , ▁when ▁a ▁much ▁higher ▁tax ▁is ▁lev ied , ▁tax ▁re venue ▁eventually ▁decre ases . ▁The ▁higher ▁tax ▁reduces ▁the ▁total ▁size ▁of ▁the ▁market ; ▁Although ▁tax es ▁are ▁taking ▁a ▁larger ▁slice ▁of ▁the ▁" pie ," ▁the ▁total ▁size ▁of ▁the ▁pie ▁is ▁reduced . ▁Just ▁as ▁in ▁the ▁n ail ▁example ▁above , ▁beyond ▁a ▁certain ▁point , ▁the ▁market ▁for ▁a ▁good ▁will ▁eventually ▁decrease ▁to ▁zero . ▁ ▁Dead weight ▁loss ▁of ▁a ▁mon opol y ▁ ▁A ▁dead weight ▁loss ▁occurs ▁with ▁mon opol ies ▁in ▁the ▁same ▁way ▁that ▁a ▁tax ▁causes ▁dead weight ▁loss . ▁When ▁a ▁mon opol y , ▁as ▁a ▁" tax ▁collect or ," ▁charges ▁a ▁price ▁in ▁order ▁to ▁cons olid ate ▁its ▁power ▁above ▁marg inal ▁cost , ▁it ▁drives ▁a ▁" wedge