1. Taxes on Producers

2. On Producers Tax Consumers Surplus Consumers Pay Tax Deadweight Loss
Producers Surplus
Producers Pay Tax
Price
Quantity
$12
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: ______ ST
$13
$11 S $2 13 12 11
$200
$1300
$1100 D
Consumers pay $1
Producers pay $1 $0

3. Tax per unit:__________ Total Tax Revenue :__________
Price ST S 12 9 7 6 5 D 2
Quantity
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

4. Tax per unit : __________ Total Tax Revenue : __________
Price ST S 18 12 10 8 7 D 3 10 12
Quantity
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? __________

5. Total Tax Revenue : _______ Total Spending by consumers : _______
Price ST S 18 12 10 8 7 D 3 10 12
Quantity
Tax per unit : _______
Total Tax Revenue : _______
Total Spending by consumers : _______
Net Revenue for firms : _______
Who pays more of the tax? _______
1.) 7-3 = 4
2.) 4*10 = 40
3.) 12*10 = 120
4.) 8*10=80
5.) They pay the same.

6. (b) On a new graph, draw and label the result of the government setting an effective price floor on the market for wheat. Identify what happens to the following:
(i) Price
(ii) Quantity supplied and quantity demanded

7. 2005 AP Micro Free Response