Answers to HW3 - Academic Csuohio

Name: ________________________ ID: A
Figure 8-4
____ 27. Refer to Figure 8-4. The price that buyers effectively pay after the tax is imposed is
a. P1.
b. P2.
c. P3.
d. impossible to determine from the figure.
____ 28. Refer to Figure 8-4. The tax is levied on
a. buyers only.
b. sellers only.
c. both buyers and sellers.
d. This is impossible to determine from the figure.
____ 29. Refer to Figure 8-4. After the tax is levied, producer surplus is represented by area
a. A.
b. A + B + C.
c. D + E + F.
d. F.
____ 30. Refer to Figure 8-4. The benefit to the government is
a. measured by tax revenue and is represented by area A + B.
b. measured by tax revenue and is represented by area B + D.
c. measured by the net gain in total surplus and is represented by area B + D.
d. measured by the net gain in total surplus and is represented by area D + E.
____ 31. Refer to Figure 8-4. The total surplus (consumer, producer, and government) with the tax is represented by
area
a. C + E.
b. A + B + C.
c. D + E + F.
d. A + B + D + F.
____ 32. The deadweight loss from a tax
a. does not vary in amount when the price elasticity of demand changes.
b. does not vary in amount when the amount of the tax per unit changes.
c. is larger, the larger is the amount of the tax per unit.
d. is smaller, the larger is the amount of the tax per unit.
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