1. F
2. T
3. T
4. T
5. F
6. C
7. C
8. D
9. B
10. E
11. C
12. A
13. C
14. E
15. C
16. B
17. E
A. Pe = $8, Qe = 4
B. P with the tax = $9, Q with the tax = 3, Tax Revenue = $9
C. Pe = $4, Qe = 8, P
with the tax = $6, Q with the tax = 6, Tax Revenue = $18
D In Part B, consumer tax incidence = $3 and
producer tax incidence = $6 while in Part C, consumer tax incidence = $12 and
producer tax incidence = $6. The demand curve is intersected in the more
elastic portion of the curve in Part B and in a relatively more inelastic
portion in Part C.