$11 S 3. Price Producers Get After Tax: ______ 4. Tax Per Unit: ______ $2
13
5. Total Tax Revenue: $200 ______
12
6. Total Spending by Consumers: $1300 ______
11
7. Net Revenue for Firms: $1100 ______ pay $1 8. Who pay more tax? Consumers ______ Producers pay $1 9. Total Tax Revenue for Government Quantity $0 Before Tax: ______
D
100
120
Price
ST S
12 9 7 6 5
D
2 12
1. 2. 3. 4. 5. 6. 7.
15
Quantity
Tax per unit:__________ Total Tax Revenue :__________ Total Spending by consumers :__________ Net Revenue for firms :__________ Who pays more of the tax? __________ How many fewer units are produced because of the tax?___ What was the lost revenue because of the tax? _________
Price
ST S
18 12 10 8 7
D
3 10
1. 2. 3. 4. 5.
12
Quantity
Tax per unit : __________ Total Tax Revenue : __________ Total Spending by consumers : __________ Net Revenue for firms : __________ Who pays more of the tax? __________
(b) On a new graph, draw and label the result of the government setting an effective price floor on the market for wheat. Identify what happens to the following: (i) Price (ii) Quantity supplied and quantity demanded
