1. Taxes on Producers

2. Tax Consumers Surplus Consumers Pay Tax Producers Surplus
Deadweight Loss
Producers Pay Tax
Price
Quantity
STax S D

3. Consumers Surplus A B C D E F G
Supply+Tax
Supply
Demand
Price($)
Quantity 7 6 4
100
120 5
Producers Surplus
Consumers Pay Tax
Producers Pay Tax
Deadweight Loss

4. A E B C D F G Consumers Surplus A B C D E F G Supply+Tax Supply Demand
Price($)
Quantity 7 6 4
100
120 5
Producers Surplus E
Consumers Pay Tax B C
Producers Pay Tax D
Deadweight Loss F G

5. On Producers Tax Consumers Surplus Consumers Pay Tax Producers Surplus
Deadweight Loss
Producers Pay Tax $6
Price before tax: ______
Price consumers pay after tax: ______
Price producers get after tax: ______
Tax per unit: ______
Total tax revenue: ______
Total spending by consumers: ______
Net revenue for firms: ______
Who pay more tax? ______
Total tax revenue for government before tax: ______ $7
Supply+Tax
Supply
Demand
Price($)
Quantity 7 6 4
100
120 5 $4 $3
$300
$700
$400
Consumers pay $1
Producers pay $2 $0

6. Tax per unit:__________ Total Tax Revenue :__________
Total Spending by consumers :__________
Net Revenue for firms :__________
Who pays more of the tax? __________
How many fewer units are produced because of the tax?___
What was the lost revenue because of the tax? _________
1.) 5-2=3
2.) 3*12=36
3.) 9*12=108
4.) 6*12=72
5.) Consumers pay two dollars, producers only pay one dollar
6.) 15-12=3 less units are produced
7.)7*15=105-72=33 dollars is the lost revenue

7. Tax per unit : __________ Total Tax Revenue : __________
1.) 7-3 = 4
2.) 4*10 = 40
3.) 12*10 = 120
4.) 8*10=80
5.) They pay the same.
Tax per unit : __________
Total Tax Revenue : __________
Total Spending by consumers : __________
Net Revenue for firms : __________
Who pays more of the tax? __________