ECON 102- B.3.4.2

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The per-unit burden of the tax on buyers is

$3.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. Producer surplus without the tax is

$4, and producer surplus with the tax is $1.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by K+L represents

tax revenue.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The amount of deadweight loss as a result of the tax is

$2.50.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by J represents

consumer surplus after the tax.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by J+K+I represents

consumer surplus before the tax.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The tax revenue is measured by the area

K+L.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The loss of producer surplus associated with some sellers dropping out of the market as a result of the tax is

$1.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. Total surplus before the tax is measured by the area

I+J+K+L+M+Y.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The deadweight loss due to the tax is measured by the area

I+Y.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The consumer surplus before the tax is measured by the area

J+K+I.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The producer surplus after the tax is measured by the area

M.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The loss of producer surplus for those sellers of the good who continue to sell it after the tax is imposed is

$2.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The loss of consumer surplus associated with some buyers dropping out of the market as a result of the tax is

$1.50.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. Total surplus without the tax is

$10, and total surplus with the tax is $7.50.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The amount of the tax on each unit of the good is

$5.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The producer surplus before the tax is measured by the area

L+M+Y.

Suppose a tax is imposed on the sellers of fast-food French fries. The burden of the tax will

be shared by the buyers and sellers of fast-food French fries but not necessarily equally.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by I+Y represents the

deadweight loss due to the tax.

Deadweight loss is the

decline in total surplus that results from a tax.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The imposition of the tax causes the quantity sold to

decrease by 1 unit.

Figure 8-2 The vertical distance between points A and B represents a tax in the market. Refer to Figure 8-2. The imposition of the tax causes the price paid by buyers to

increase by $3.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by M represents

producer surplus after the tax.

When tires are taxed and sellers of tires are required to pay the tax to the government,

the quantity of tires bought and sold in the market is reduced.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by J+K+L+M represents

total surplus after the tax.

Refer to Figure 8-1. Suppose the government imposes a tax of P' - P'''. The area measured by I+J+K+L+M+Y represents

total surplus before the tax.