12. The table below presents the annual market for sofas in Akron, Ohio. Supposethe state government imposes a $200 excise tax on every sofa sold to be paid by customers at the point of sale.

Market for Sofas

Price (dollars)	Quantity of Sofas Demanded	Quantity of Sofas Supplied	Quantity of Sofas Demanded with Excise Tax
$1,240	190	290	90
1,180	220	270	120
1,120	250	250	150
1,060	280	230	180
1,000	310	210	210
940	340	190	240
880	370	170	270
820	400	150	300
760	430	130	330
700	460	110	360

a.Before the excise tax is imposed, what are theequilibrium price and quantity of sofas in Akron?

multiple choice 1

• $1,120 and 250 sofas
• $1,180 and 250 sofas
• $1,200 and 280 sofas
• $1,000 and 210 sofas

b. Including the excise tax, what is the new equilibrium price consumers pay for sofas after the taxisimposed?

multiple choice 2

• $1,120
• $800
• $1,200
• $1,000

c. After the excise tax is imposed, what is the new equilibrium quantity of sofas?

multiple choice 3

• 230 sofas
• 210 sofas
• 250 sofas
• 190 sofas

d. How much tax revenue does the excise tax on sofas raise per year in Akron?

multiple choice 4

• $42,000
• $4,200
• $420
• $42