12 11 10 9 8 7 6 5 3+ 2+ 1 Supply Demand 05 1 15 2 25 3 35 4 45 5 Quantity 5. Refer to Figure 8-2. The imposition of the tax caus a. increase by 1 unit. b. decrease by 1 unit. increase by 2 units.

Figure 4-15 Price (dollars per case) $32 27 22 20 0 Tax- 50 O $7. O $20. O $22. O $27. 90 Supply with tax Supply Quantity (thousands of cases) Figure 4-15 shows the market for beer. The government plans to impose a per-unit tax in this market. Refer to Figure 4-15. The price buyers pay after the tax is

(Figure: Determining Tax Burdens) Based on the graph, the original market price is $4. The graph depicts a tax of with a corresponding deadweight loss of Price ($) 98765432 T X D 0 50 100 150 200 250 300 350 400 450 500 550 600 Quantity $6; $3 $3; $150 $6; 50 units $3; $75

Figure 8-3 The vertical distance between points A and C represents a tax in the market. P4 P3 P2 Pl Price Q1 B b. ABC. c. P3ACP1. d. P2DAP3. Q2 Supply Demand Quantity Refer to Figure 8-3. The amount of tax revenue received by the government is equal to the area a. P1CDP2.

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QUESTION 3 What tax per item t will maximize total tax reveue T = tq if the demand is p+q3D1000 and supply 92 +2.5q+920 30 is

Refer to Figure 4-4. The per unit burden of the tax on buyers is a. P2 minus P0. b. P2 minus P1. c. P1 minus P0. d. Q1 minus Q0.

The vertical distance between points A and B represents the original tax. 12+ 11+ 10 9 8 7. 6 Price 2 1 D 05 1 15 2 25 3 35 4 45 5 Quantity Refer to Figure 8-19. If the government changed the per-unit tax from $5.00 to $7.50, then the price paid by buyers would be $10.50, the price received by sellers would be $3, and the quantity sold in the market would be 0.5 units. Deadweight loss would now be a. $1.50 O b. $0.50 c. $4.0 Od. $0.625

xation) 12 11 20 9. 1. 1 6. S 4 3- 2- Figure 8-22 90 300 130 120 Refer to Figure 8-22. Suppose the government changed the per-unit tax from $3.00 to $4.50. Compared to the original tax rate, this higher tax rate would a. increase tax revenue and increase the deadweight loss from the tax. b. increase tax revenue and decrease the deadweight loss from the tax. c. decrease tax revenue and increase the deadweight loss from the tax d. decrease tax revenue and decrease the deadweight loss from the tax.

Suppose in the market for cigarettes, the price elasticity of supply is 2.4 and the price elasticity of demand is −0.8. If an excise tax is imposed on sellers of cigarettes, then _____.     a buyers and sellers will pay equal shares of the tax b buyers will pay a greater share of the tax than sellers will c buyers will pay the whole tax d sellers will pay a greater share of the tax than buyers will e sellers will pay the whole tax