02 Jun The diagram above shows the market for pizza before and after a tax is
Question
The diagram above shows the market for pizza before and after a tax is imposed.
(a) when a tax is imposed, the price paid by consumers is_________________
(b) when a tax is imposed, the price obtained by producers is_________________
(c) the consumer surplus after the tax is imposed is given by______________
(d) the producer surplus before the tax is imposed is given by___________________
(e) the tax income of government is given by____________________
(f) the deadweight loss of tax is given by__________________
(g) suppose Q1= 100,Q2=50, PB=100 , Ps =60,the deadweight loss numerically equals __________________________ (you don’t have to know to P1 to get the answer!)
(h) when the demand curve becomes steeper, the deadweight loss of tax becomes _________ a: bigger b: smaller
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