1 1. The figure shows the market for milk. The government imposes the sales tax shown in the figure on sellers. Sotax 9.50 & 3.00 2.50 $ 2.00 1.50 1.00 X 0.50 D 0 2 4 6 8 10 12 14 Quantity (thousands of gallons per day) Use the above figure and based on what you learnt in class, answer the following questions: The amount of the tax rate is $[ J per gallon. The tax burden ON CONSUMERS is $ J per gallon. The tax incidence is [ J (a ratio number). The government revenue from this tax is $[ thousands. The deadweight loss for the society from this tax is $ thousands. The loss of consumer surplus is $ thousands. in the figure if the [ Automobile owners (i.e., consumers in the market) would pay a larger part of this tax than what is shown J (demand or supply) curve were more inelastic. 12. On your scratch paper, please draw the table to calculate Profit for your convenience, Then use the following information about Sheila's shop to fill in the blanks. Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $500,000. Sheila runs the business herself. Her alternative employment options are to be a college swimming coach for $45,000 per year or construction worker for $35,000 per year. The two options cannot be accepted simultaneously Sheila spends $260,000 purchasing goods for resale to her customers. She also has four