Price (P) S2 (after tax) S, (before tax) Тах $35 $30 $25 $20 D 90 100 Quantity (Q) The diagram above shows a market before and after an excise tax has been levied by the governmen was socially optimal, the deadweight loss from the tax is Select one: a. $400 b. $50 c. $100 d. $300

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Price, P ps subsidy Pe p8 subsidy Subsidy S Per unit subsidy D QE Qsubsidy Look at the figure above where a subsidy has been imposed on the good. What does a subsidy do? ( Does it lead to a deadweight loss?! Why or why not? Show/explain this - you may attach images if it's easier. (3 Quantity, Q

Figure 1. The graph depicts the market for plastic containers. Price 16- 14- 12- 10 8- 6 200 500 650 Social Cost Private Cost Demand Quantity Refer to Figure 1. In order to reach the social optimum, the government could O offer a subsidy of $8 per unit on the production of plastic containers. O impose a tax of $8 per unit on the production of plastic containers. O offer a subsidy of $4 per unit on the production of plastic containers. O impose a tax of $4 per unit on the production of plastic containers.

Using the attached table, the equilibrium price before the tax is imposed is . The equilibrium price after the tax is imposed is a b Question 19 с d Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. $140, $160 $160, $140 $140, $150 Price (S) 100 $160, $150 120 140 160 180 200 220 Quantity Quantity Quantity Demanded Supplied Supplied w/Tax 600 530 575 540 550 550 525 560 570 500 475 450 580 590 495 505 515 525 535 545 555

45 40 35 30 25 20 P ($) Social cost Supply 15 10 Demand 5 0 0 10 20 30 40 50 60 70 80 90 100 wanted to tax or subsidize this good to achieve the Refer to the figure above. If the government socially-optimal level of output, it would Select one: O a introduce a subsidy of $10 per unit. O b. impose a tax of $10 per unit. Oo impose a tax of $15 per unit. Od introduce a subsidy of $15 per unit. 8