A tax of $1 in the market for widgets causes a deadweight loss of $2. If the tax is raised to $3 then deadweight loss will be approximately: A) 18 B) 6 C) none of these answers D) 12

When tax is raised, consumer surplus: (a) Falls (b) Rises (c) Remain unchanged (d) Becomes zero

1)    Describe in detail how taxes impact consumer and producer surplus. In your discussion, also show graphically, the before and after-tax impact.

2.If a tax is physically paid by sellers, then sellers bear the full 100% burden of the tax. Group of answer choices False True

A) The town of Dimmsdale is a popular tourist destination. The problem is, the tourists are not always considerate of the beautiful landscapes in and around Dimmsdale. Cleanup efforts cost Dimmsdale $5005 a day. The town has decided that it would be only fair to finance this by a "bed tax"-a per-room-per-night tax on every occupied tourist accommodation room. Denote this tax (in dollars per room per night) by t. Dimmsdale has many small hotels, guest houses, and B&Bs. The providers of these (“hoteliers") can all be assumed to be in perfect competition with each other, and they are all similar enough that tourists consider them perfect substitutes. The demand function for rooms is Q,(p) 700 - 5p, where Q, is the number of rooms demanded and p is the price per room per night in dollars. The marginal cost of providing a room is c = $50 per night, 60% of which is labor costs (accruing to the workers of Sunnyside). The total number of rooms available is fixed at Q = 400 (this cannot be…

of a given activity. c) Economists refer to the revenue collected as a result of a tax as the burden of taxation. Economists refer to other costs imposed on society because of the tax as the burden of taxation.

Demand: D(p) = 2110- 7p Supply: S(p) = 23p - 500 a) First, assume that no caxes are imposed. Find the equilibrium price and quantity. Price= $ Quantity = 9. b) Now assume a specific tax of $8 per unit is imposed on suppliers. Find the new equilibrium price and quantity. Price = $ Quantity = 8. c) What portion of the tax is paid by the consumer and what portion of the tax is paid by the producer? Consumer pays $ esc Producer pays $ 9. d) How much tax revenue is generated for the government? Tax revenue = $ ! 7 :9 4 FI 2 9,262 F2 # 3 20 F3 DOD $ 4 F4 % 5 FS MacBook Pro *** A 6 e tv A F6 ◄◄ & 7 F7 ► 11 * O FB F9 Instructions ^ F10 FI O

If a $6 per unit excise (sales) tax is imposed, who will suffer the greater burden of this tax, the suppliers or demanders?     a) Demanders     b) Suppliers     c) Both share the burden equally     d) Can't tell from the available information

Comcast has a cable monopoly. The following graph shows the demand, MR, and MC curve of Comcast. Use the graph to answer questions 3 to 8. Price (P) and Costs (in dollars per subscription) $25 $22 $21 $20 $19 0 5 6.5 MC 7 MR ATC Q (Number of subscriptions in millions per month)

Problem 6-9 Demand change effects on government revenue The market for Titanium has supply given by P = Q and demand given by P = 12 - Q. The government introduces a tax of €3/g. Yet, the market experiences growth in the demand for titanium because of new-found medical uses. The new demand curve is P= 13 - Q. Find the change in government tax revenue due to the increased demand for titanium. (Round your answer to one decimal place.) € million