1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for blinkies (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario. PRICE (Dollars per blinkie) 56.00 40.00 Demand 24.00 A B D MURA Supply ?

2. Suppose the price.elasticity of demand for commödity M is less than one. When a tax is imposed on commodity Mproduetion, it changes the price, quantity, and consumer speņding in which of the following ways? - Price Quantity Spending Irierease Decrease Decreàse. Therease Ancrease a. Increase- b. -Deerease Decrease Decrease Decrease - Decrease Iacrease

question 6 macroecon

1. Understanding the implications of taxes on welfare The following graph represents the demand and supply for Pinckney (an imaginary product). The black point (plus symbol) indicates the pre-tax equilibrium. Suppose the government has just decided to impose a tax on this market; the grey points (star symbol) indicate the after-tax scenario.   PRICE (Dollars per Pinckney)QUANTITY (Pinckney's)DemandSupplyABCDEF9.00187.0011.0014   Complete the following table, given the information presented on the graph. Result Value Equilibrium quantity after tax   Price consumers pay after-tax   Per unit tax     In the following table, indicate which areas on the previous graph correspond to each concept. Check all that apply. Concept A B C D E F Consumer surplus after the tax is imposed               Producer surplus before the tax is imposed               Tax revenue after the tax is imposed