Biology Forums - Study Force

Question 1.

Figure 4-8



Figure 4-8 shows the market for beer. The government plans to impose a per-unit tax in this market.


Refer to Figure 4-8. For each unit sold, the price sellers receive after the tax (net of tax) is

• $20.

• $22.

• $27.

• $32.

Question 2.

Figure 4-8



Figure 4-8 shows the market for beer. The government plans to impose a per-unit tax in this market.


Refer to Figure 4-8. As a result of the tax, is there a loss in consumer surplus?

• Yes, because consumers pay a price above the economically efficient price.

• No, because the producer pays the tax.

• No, because the market reaches a new equilibrium

• No, because consumers are charged a lower price to cover their tax burden.

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