Question

11. The following represents the market for dog biscuits. A cat person has been elected governor and has imposed a S5 tax on each case of dog biscuits sold. In order to discourage the ownership of dogs the governor makes buyers responsible for paying the tax 45 ys for 35+ as ao 15 10 a) Shift the appropriate curve to show the effect of this tax b) Label the new equilibrium quantity as Q c) Shade in the area representing any dead weight loss from this tax. d) Who bears the greater burden of this tax, buyers or sellers? e) How would your answer to part d change if sellers had to pay the tax?

Answer 1

25 20 5 a)As it is a tar n bees, Seand Cre wll swet e4 inelad e-than-the 03 00Anot matei ne tax