Question

6. Refer to Figure 6-8. The effective price that buyers ay after the tax is imposed is 

7. Refer to Figure 6-8. The price that sellers receive after the tax is imposed is

8. Refer to Figure 6-8. The amount of the tax per unit is 

9. Refer to Figure 6-8. The burden of the tax on sellers is 

10. Refer to Figure 6-8. Suppose the same Sand D curves apply, and a tax of the same amount per unit as shown here is imposed. Now, however, the sellers of the good, rather than the bivers are reired to nav the tax to the government.

Answer 1

6. Option a. As it shifts the demand curve down which increases price paid by consumer

7. Option c. Price received decreases from $6 to $5

8. Option c. Price paid by consumer-Price received by producer=$8-$5=$3

9. Option a. Earlier price-New Price = 6-5=$1