Refer to Figure 4-20. The figure above represents demand and supply in the market for gasoline. Use the diagram to answer the following questions.
a. How much is the government tax on each gallon of gasoline?
b. What portion of the per-unit tax is paid by consumers?
c. What portion of the per-unit tax is paid by producers?
d. What is the quantity sold after the imposition of the tax?
e. What is the after-tax revenue per gallon received by producers?
f. What is the total tax revenue collected by the government?
g. What is the value of the excess burden of the tax?
h. Is this gasoline tax efficient?
Question 2
A decrease in the equilibrium quantity for a product will result
A) when there is an increase in supply and a decrease in demand for the product.
B) when there is a decrease in supply and a decrease in demand for the product.
C) when the quantity demanded for the product exceeds the quantity supplied.
D) when there is a decrease in demand and an increase in the number of firms producing the product.
Hydrocephalus. The figure on the left is a child with the enlarged ventricles of hydrocephalus. The
Paul Colin, Figure of a Woman.
Economic recession in 2008 saw a small decrease in demand
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