Ch 06.2

Refer to the figure above. The price that buyer's pay after the tax is imposed is $9.00 $12.00 $8.00 $10.50

$12.00

Refer to the figure above. The price paid by buyers after the tax is imposed is $21 $16 $18 $24

$24

Refer to the figure above. What is the amount of the deadweight loss that results from the tax? $22.5 $30 $7.5 $450

$30

Refer to the figure above. What is the amount of the tax per unit? $3 $1 $2 $4

$4

Refer to the figure above. In the after-tax equilibrium, how much revenue does the government collect from the tax on this good? $480 $420 $345 $210

$420

Refer to the figure above. The per-unit burden of the tax on buyers of the good is $8 $4 $2 $6

$6

Refer to the figure above. Acme, Inc. is a seller of the good. Acme sells a unit of the good to a buyer and then pays the tax on that unit to the government. Acme is left with how much money? $10.50 $8.00 $12.00 $9.00

$8

Refer to the figure above. What is the amount of the tax per unit? $8 $4 $2 $6

$8

Refer to the figure above. Which of the following statements is correct? The amount of the tax per unit is $6. The tax leaves the size of the market unchanged. The tax is levied on buyers of the good, rather than on sellers. All of the above are correct.

The tax is levied on buyers of the good, rather than on sellers.

Refer to the figure above. Suppose buyers, rather than sellers, were required to pay this tax (in the same amount per unit as shown in the graph). Relative to the tax on sellers, the tax on buyers would result in a. buyers bearing a larger share of the tax burden. b. sellers bearing a smaller share of the tax burden. c. the same amount of tax revenue for the government. d. Both a) and b) are correct.

c. the same amount of tax revenue for the government.

In the case of excise taxes, the tax incidence (i.e. the amounts of the tax burden that fall on buyers and sellers) is determined by the government when it writes the tax as a tax on buyers (NOT THIS ONE!!!) the government when it writes the tax as a tax on sellers (NOT THIS ONE!!!) It's impossible to know (NOT THIS ONE EITHER!!!) the relative elasticities of supply and demand (100% THIS ONE!!! - THIS IS NOT A TRICK)

the relative elasticities of supply and demand (100% THIS ONE!!! - THIS IS NOT A TRICK)

Refer to the figure above. How is the burden of the tax shared between buyers and sellers? Buyers bear three-fourths of the burden, and sellers bear one-fourth of the burden. one-half of the burden, and sellers bear one-half of the burden. one-fourth of the burden, and sellers bear three-fourths of the burden. two-thirds of the burden, and sellers bear one-third of the burden.

three-fourths of the burden, and sellers bear one-fourth of the burden.