Tax Incidence: Net Changes in Price and Quantity From a Tax (alga) Given the following interactive tool: Tax Incidence III GRAPH Surplus Measures . Tax imposed on: Supply Demand . Excise Tax (0 $20) 10,00 Demand Perfectly Relatively Inelastic . Elastic Relatively Elastic Supply Less Elastic . Relatively Elasc a CALCULATIONS 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9 0 Quantity Consumer Surplus Producer Surplus Welfare Loss N T 50 00 4 000 l Transfered 13o Govemrnent Transfered to Government (Deadwkeight Loss) 0 Ex $ I I Instructions: Type in the amount ofa tax, and click Supply or Demand to choose whether the tax is imposed on sellers or on buyers. Then move the Demand or Supply sliders to change the elasticities of supply and demand. Adjust the elasticity of demand so that the vertical intercept is $90. Adjust the supply elasticity so that the vertical intercept of the supply curve is $30. Turn on the "Surplus Measures" switch above the graph to help you visualize surplus and answer the following question: a. Calculate the revenue the government would earn in this market from an $10 excise tax on suppliers. |:| Note that the quantities are measured in thousands. Report your answer to the nearest whole dollar: b. How much more will consumers end up paying per unit ifthe government imposes a $10 tax? 5 |:| (Report your answer to two decimals places. If consumers pay less, include a negative sign.) c. After paying the $10 tax, how much revenue do sellers keep per unit sold ("net revenue from sales")? |:|