Question

Figure &-6 The vertical distance between points A and B represents a tax in the market. Price 22 20 18 Supply 16 14 12 10 6 Demand 2 + Quantity 100 200 300 400 500 600 700 800 900 10001 1001200 8. Refer to Figure 8-6. Without a tax, the equilibrium price and quantity are a. $16 and 300. $10 and 300. d. $6 and 300. $10 and 600. b. c. 9. Refer to Figure 8-6. When the tax is imposed in this market, the price buyers effectively pay is a. $4. d. $16. b. $6. c. $10. Refer to Figure 8-6. What happens to total surplus in this market when the tax is imposed? a. Total surplus increases by $1,500 b. Total surplus increases by $3,000 10. c. Total surplus decreases by $1,500. Total surplus decreases by $,3000. d. 11. Refer to Figure 8-6. The amount of tax (on per unit of product) born by consumers is d. $0 b. $10 a. $4 c. $6
need to know the math behind finding these answers

Answer 1

8) Equilibrium price = 10

Equilibrium quantity = 600

option(B)

9) Price buyers pay = 16

option(D)

10) TS decreases

TS before = 0.5*600*(22-10) + 0.5*600*(10-2) = 6000

TS after = 0.5*300*(22-16) + 0.5*300*(6-2) + 300*(16-6) = 4500

TS decreases by 6000-4500 = 1500

option(C)

11) Tax on consumers = (16-10) = 6

option(C)