Question 6: The excess burden, or deadweight loss, of taxation reflects: O the social benefit of the government spending funded by the revenue from the tax. O the degree to which taxes are born by buyers rather than sellers. O the losses in tax revenue resulting from tax evasion by consumers and producers. Olosses to buyers and sellers over and above the amount of tax revenue paid.

(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

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In the diagram, consumer surpluses before and after the tax are ______ and ______, respectively.     A + B; B   A + B + C; A   D + E + F; B   B + C; A + B

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

Suppose that the demand and supply functions for a good are given as follows: Demand: Q =1080-7P --120+3P Suppose now that government iniposes S60 tax per unit of output on sellars. What is the tax revenue for the govemment at the equilibrium? 7200 7320 6840 6000

If the government imposes a $5 excise tax on the production of wine, then from the perspective of wine consumers, the "effective" or after-tax supply curve for wine wil shift down vertically by more than $5 Mp verticaly by exactly SS down vertically by exoctly $5 dwn vertically hv less than $ atly Inv less then 15 left herleaty

9. When a sales tax is imposed on sellers, we can imagine a hypothetical supply curve shifted to the left such that the vertical distance between the original supply curve and the new (supply + tax) curve equals the sales tax divided by the price elasticity of demand. sales tax multiplied by the price elasticity of demand. sales tax multiplied by the price elasticity of supply. amount of the sales tax.

To determine who bears the greater share of a tax, we compare the اختر أحد الخيارات .a. elasticity of supply to the elasticity of demand O .b. pre-tax quantity to the post-tax quantity O .C. government tax revenue to the revenue collected by the suppliers O .d. size of the tax to the price of the good O .e. number of buyers to the number of sellers O