F.5 Economics Book 1 Chapter 7 per unit tax_20230922

Per unit tax will affect

(1) Demand curve

(2) Supply Curve

(3) Market price

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1), (2) and (3)

Imposition of per unit tax will led to _____________ in market price and ______________ in quantity transacted.

• a decrease ..... a decrease

• a decrease ..... an increase

• an increase ...... an increase

• an increase ...... a decrease

Sellers' total revenue = ___________________________.

• consumers' total expenditure - total tax revenue

• consumers' total expenditure

• consumers' total expenditure + total tax revenue

• total tax revenue

Total tax burden = ______________________________

• consumer's burden - prodcuers' burden

• consumer's burden + prodcuers' burden

• consumer's burden X prodcuers' burden

• consumer's burden / prodcuers' burden

After a $2 per unit tax, the equilibrium price increases from $8 to $9 and the quantity transacted decreases from 20 to 15. The tax revenue is _____________ and the consumer burden is ______________.

• $40 ...... $20

• $40...... $15

• $30 ......$20

• $30 ...... $15