1.If a tax is increased,

a. consumers will pay a higher price.

b. consumers will lose consumer surplus.

c. producers will receive a lower price after taxes.

d. all of the above are true

2. Refer to Exhibit 7-13 below.

Exhibit 7-13

Price Per Bottles of Wine Bottle of Wine Consumed Per Year $50 $40 $30 $20 W N $10Quantity of Bicycles Per Week 188 868 10 2 3 5 Number of Workers Employed per Week\f\f\f\f\f