P
24
20 A
16
12
8
1
LI
B
"
4
C
D
F
G H
K
L
M
Supply
Demand
2 4
6
8
10 12 14
16 Q
What is the equilibrium price and quantity?
P of 12 and Q 8
2. Consumer surplus is equal to the area of D+F+G, A+B+C, or A+B+C+D+F+G
3. Producer surplus is equal to the are of A) D+F+G, B) A+B+C, or C)A+B+C+D+G+F

Suppose the government institutes a $10 tax per unit on the good assessed against the seller.
4. Supply shifts to the, A) Left, or B) Right
5. What is the new equilibrium price and quantity? P 18 and Q4, or P 4 and Q 18
6. How much of the tax (in dollars) is paid by the buyers? A) $4, B) $6, or C)$10
7. How much of the tax (in dollars) is paid by the sellers? A)$4, B) $6, or C) $10
8) How much does the government receive in tax revenues from this tax? A) $72, B) $40, or C) $18
9. Consumer surplus after the tax is equal to the area of, A) A, B) A+B+C, C) B+C, or D) J
10. Producer surplus tax after the tax is equal to the area of which of the following? A)D+F+J, B)A+B+C, C) A, or D) J
11. The deadweight loss created by this policy equals which of the following areas? A)C+F, B) A+B+D+F, or C) none of the above