Q Question 1 6 / 6 pts Figure 7-16 illustrates a market with a Tax of P3 to P1. (Your answers should be a list of the proper letters in their own alphabetical order) For Example: If your answer was the area of zones D, H, and F it would be submitted as DFH 1. What is the Consumer Surplus prior to the tax. 2. What is the Producer Surplus prior to the tax. 3. What is the Consumer Surplus after to the tax. 4. What is the Producer Surplus after to the tax. 5. What is the Deadweight Loss after the tax. 6. What is the total tax collected by the tax P3 to P1. Question 2 7 / 7 pts Figure 10-2 Illustrates a market with an externality. Define the following: 1. What is the Equilibrium Price of the concerts. 2. What is the Equilibrium Quantity of the concerts. 3. What is the Optimal Price of the concerts. 4. What is the Optimal Quantity of the concerts. 5. Is this a positive or a negative externality ? (single word answer-positive or negative) 6. What is the value of the externality ? (number no dollar signs or decimals) 7. What is the value of the corrective tax applied to correct the externality ? Question 3 6 / 6 pts Figure 10-2 Illustrates a private market for Sriracha spicy sauce and its externality. (True Story) Huy Fong Foods, maker of the popular Sriracha spicy sauce, causes strong smells that have irritated people in its neighborhood. The prices stated are the selling values of the sauce and/or the damage to the citizens. In your short answer break out your answers in the following short paragraphs: Paragraph #1 (2 points) Define the type of (positive or negative) externality and the party responsible for producing the damage. Positive or Negative Externality Paragraph #2 (2 points) What would be the taxation solution to this problem? Tax value $ (value, no decimals or $ signs) Who pays the tax?. Buyer of Seller? (write Buyer of Seller) Paragraph #3 (2points) How many units would need to be reduced if regulation were the solution to this problem? State the number of units to be reduced to achieve Social Equilibrium . (number only) Question 4 6 / 6 pts Suppose sellers of liquor are required to send $3.00 to the government for every bottle of liquor they sell. Further, suppose this tax causes the price paid by buyers of liquor to rise by $2.40 per bottle. The equilibrium price of the liquor was $7.00 per bottle before the tax. The graph below is for reference only. Please respond to the following. Use numbers only on numerical answers. Do not use $ in the answer post. ( Example 2.50, or .50 or .05) The equilibrium price before the tax. $ The price that buyers effectively pay after the tax. $ The price that sellers effectively receive after the tax. $ The incidence of the tax on buyers is . $ The incidence of the tax on sellers is. $ Who is more inelastic? Select one of the following: Buyer or Seller Question 5 7 / 7 pts The graph above is the United States supply and demand schedules for Digital Cameras trading in an open market. In the United States, there is a "one worker to one camera" ratio. It the US produces one additional camera, then it employs one additional worker." The Questions (Please answer all components of the question. Economics argue that tariffs have a negative impact on trade. Using the prices and quantities on the graph above discuss the impact of 1. Define the World Price as well as the Tariff Value (per unit) and gross revenue for the country collected from the tarrif. (all items, whole number, no decimals or $ signs. 2. Examine the Country's Gains and Losses from operating at the World Price. Gains # of cameras. Loses # of workers 3. Examine the Country's Gains and Losses from operating at the Tariff Price. (Measure from closed economy) Gains # of cameras. Loses # of workers