Use the following table for Tasks 1 and 2.

1. If the sandwich market is efficient draw diagram and clearly label the areas of the diagram that represent producer surplus and consumer surplus.

1. Imagine that the government has applied a $1 tax to the market (which will be paid by customers) represented in the task 1 supply and demand diagram. How does this affect total surplus? Use a supply- and-demand diagram to demonstrate the effects of the task.

1. What advantages are there to taxation? What are the disadvantages to taxation?

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Use the following table for Tasks 1 and 2. Price Quantity Demanded Quantity Supplied (dollar per sandwich] {sandwich per hour} [sandwich per hour} Task 1 If the sandwich market is efficient draw diagram and clearly label the areas of the diagram that represent producer surplus and consumer surplus. Task 2 Imagine that the government has applied a 51 tax to the market [wh ich will be paid by customers} represented in the task 1 supply and demand diagram. How does this affect total surplus? Use a supply- and-demand diagram to demonstrate the effects of the task. Task 3 What advantages are there to taxation? What are the disadvantages to taxation