What happens to the total surplus in a market when the government imposes a tax quizlet?

To fully understand how taxes affect economic well-being, we must compare the

a. consumer surplus to the producer surplus.
b. price paid by buyers to the price received by sellers.
c. consumer surplus to the deadweight loss.
d. reduced welfare of buyers and sellers to the revenue raised by the government.

When a tax is levied on a good, the buyers and sellers of the good share the burden,

a. provided the tax is levied on the sellers.
b. provided the tax is levied on the buyers.
c. regardless of how the tax is levied.
d. provided a portion of the tax is levied on the buyers, with the remaining portion levied on the sellers

A tax on a good

a. raises the price that buyers effectively pay and lowers the price that sellers effectively receive.
b. raises the price that buyers effectively pay and raises the price that sellers effectively receive.
c. lowers the price that buyers effectively pay and raises the price that sellers effectively receive.
d. lowers the price that buyers effectively pay and lowers the price that sellers effectively receive.

One result of a tax, regardless of whether the tax is placed on the buyers or the sellers, is that the

a. supply curve for the good shifts upward by the amount of the tax.
b. equilibrium quantity of the good is unchanged.
c. price the buyer effectively pays is lower.
d. tax reduces the welfare of both buyers and sellers.

When a tax on a good is enacted,

a. sellers always bear the full burden of the tax.
b.sellers bear the full burden of the tax if the tax is levied on them; buyers bear the full burden of the tax if the tax is levied on them.
c. buyers and sellers share the burden of the tax regardless of whether the tax is levied on buyers or on sellers.
d. buyers always bear the full burden of the tax.

In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3. The government is able to raise $750 per month in revenue from the tax. The deadweight loss from the tax is

a. $50.
b. $125.
c. $75.
d. $250.