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QUESTION 3 Figure Price Supply P K I P P B M N Demand Quantity Refer to Figure. If the government imposes a tax size of P- P
QUESTION 4 4 point Figure Supply Dennd Quantity Q1 02 Q3 Q Qs Refer to Figure. If the government impose a tax in the above ma
QUESTION 7 Figure: The vertical distance between points A and C represents a tax in the market. 1000 Price 900+ 800 700 Suppl
QUESTION 8 Figure Price Supply J К L р М B N Demand Оuanity Refer to Figure. Suppose the government imposes a tax of a size o
QUESTION 9 Figure: The vertical distance between points A and B represents a tax in the market. Price 22+. 20+ 18+ Supply 16
QUESTION 12 Figure: The graph below shows a demand curve and four supply curves Price ts $2 $4 D Deantity Refer to Figure. If
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Answer #1

3. The area (L + M + Y) represents producers surplus before the tax. Before tax equilibrium price is P'' and producers surplus is the area below the price and above the supply curve.

Answer: option D

4. At new quantity Q2, buyers pay P2 but sellers receive P8. Producers surplus is the area below the price sellers receive and above the supply curve. New producers surplus = (1/2)*(P8 - 0)*Q2

Answer: option B

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