PART B: Analytic Qs
[Q1-Q4] Refer to the figure below, where the government imposes a per unit tax of size T.
What is the amount the tax revenues collected?
A. 205
B. 210
C. 215
D. 220
The size of the deadweight loss is
A. larger than 10
B. smaller than 5
C. between 3 and 7
D. between 6 and 10
(7.5)
After the tax, the price consumers will pay in the market will
A. increase by exactly T.
B. increase by less than T.
C. increase by more than T.
D. remain the same as the price before the tax.
In the figure above, the tax burden is is because
A. borne by the producers; it is imposed by law on producers
B. borne by consumers; demand is more elastic at the market price
C. borne by consumers; demand is less elastic at the market
D. shared approximately equally; producers pass on their cost increases to consumer
PART B:Analytic Qs
[Q1-Q4] Refer to the figure below, where the government imposes a per unit tax of size T.
Price
S
4
S
3
205
220
Quantity
1.What is the amount the tax revenues collected?
A. 205
B.210
C.215
D. 220
2.The size of the deadweight loss is
A. larger than 10
B.smaller than 5
C. between 3 and 7
D.between 6 and 107.5
3. After the tax, the price consumers will pay in the market will
A. increase by exactly T.
B.increase by less than T.
C. increase by more than T.
D. remain the same as the price before the tax
4. In the figure above,the tax burden is
is because
A. borne by the producers; it is imposed by law on producers
B. borne by consumers; demand is more elastic at the market price
C. borne by consumers; demand is less elastic at the market
D. shared approximately equally; producers pass on their cost increases to consumer