Question (4 points) The diagram below illustrates the impact of a $2 per-unit tax on cheese buyers. The equilibrium price and quantity without the tax is $8 and 80 pounds of cheese. 1st attempt Price 16 15 14 13 12 11 10 8 7 5 4 Cheese Market $1 3 2 1 D1 D2 8 8 8 Quantity (pounds of cheese) Part 1 (2 points) The full amount buyers will pay for a pound of cheese (a) is and the price per pound sellers receive (b) is $8.00 $9.00 $7.00 Part 2 (2 points) Now let's look at the tax incidence, or the burden of the tax. The consumer's total tax incidence (a) is producer's total tax incidence (b) is , and the 10 Question (4 points) See page 16/ The diagram below illustrates the impact of a $2 per-unit tax on cheese buyers. The equilibrium price and quantity without the tax is $8 and 80 pounds of cheese. 1st attempt Part 1 (2 points) Price 16 15 14 13 12 11 10 9 8 7 8 5 4 3 2 Cheese Market S1 D2 D1 0 B 8 8 1 1 1 1 1 Quantity (pounds of cheese) The full amount buyers will pay for a pound of cheese (a) is , and the price per pound sellers receive (b) is Part 2 (2 points) Now let's look at the tax incidence, or the burden of the tax. The consumer's total tax incidence (a) is producer's total tax incidence (b) is , and the $70 $80 $140