econ ch 8 study questions

If there is no tax placed on the product in this market, total surplus is the area

A+B+C+D+E+F

If a tax is placed on the product in this market, tax revenue paid by the sellers is the area

C

If a tax is placed on the product in this market, producer surplus is the area

D

If a tax is placed on the product in this market, deadweight loss is the area

E+F

Deadweight loss is greatest when

both supply and demand are relatively elastic

A tax on gasoline is likely to

cause a greater deadweight loss in the long run when compared to the short run.

If a tax is placed on the product in this market, consumer surplus is the area

A

If a tax is placed on the product in this market, total surplus is the area

A + B + C + D

If there is no tax placed on the product in this market, consumer surplus is the area

A + B + E.

If a tax is placed on the product in this market, tax revenue paid by the buyers is the area

B

If there is no tax placed on the product in this market, producer surplus is the area

C + D + F

Which of the following is true with regard to the burden of the tax in Exhibit 4?

The sellers pay a larger portion of the tax because supply is more inelastic than demand.

Which of the following would likely cause the greatest deadweight loss?

a tax on cruise line tickets