1. What is the equilibrium price and quantity? 2. Consumer Surplus is equal to the area of 3. Producer Surplus is equal to the area of Suppose the government institutes a $10 tax per unit on the good assessed against the seller. 4. Show the effect of this tax on the diagram. 5. What is the new equilibrium price and quantity? 6. How much of the tax (in dollars) is paid by the buyers? 7. What is the dollar amount per unit that the sellers receive after paying the tax? 8. How much of the tax (in dollars) is paid by the sellers? 9. How much does the government receive in tax revenues from this tax? 10. Consumer Surplus after the tax is equal to the area 11. Producer Surplus after the tax is equal to the area 12. The deadweight loss created bythis policy equals the area 13. When demand is elastic, who pays the larger portion of the tax (the buyer or seller)? l.I'l'lzqr? 14. When demand is inelastic, who pays the larger portion of the tax (the buyer or seller)? Why? 15. Based on your answers, is product demand elastic or inelastic