1.

A government imposes a $10 per unit tax in a competitive market. Forward the sellers after-tax price falls from the original equilibrium price of $20 to $18. Based on this which of the following is true?

producers are bearing 10% of the tax burden

The next after-tax equilibrium price will be $30

consumers are bearing 80% of the tax burden

The government will collect less than $10 per unit exchanged of the good

The quantity demand it will decrease by 10%

2. gadgets are known to have elastic demand when their price decreases from eight dollars to six dollars. What must be true of the change in quantity demanded over this price range?

Increase by exactly 25%

it decreased by exactly 25%

it's decreased by less than 25%

it increased by more than 25%

it decreased by an indeterminate amount

For any transaction in the product market, the benefit received by consumers is known as and the benefit received by producers is known as O satisfaction; profit O the purchase; the price total utility; total revenues personal benefit; utility O net benefit; total profit