2009 AP MICROECONOMICS FREE-RESPONSE QUESTIONS PRICE (S) S + Tax $2 0 60 90 QUANTITY 2. The graph above illustrates the market for calculators. S denotes the current supply curve, and D denotes the demand curve. (a) Calculate the producer surplus before the tax. (b) Now assume a per-unit tax of $2 is imposed whose impact is shown in the graph above. (i) Calculate the amount of tax revenue. (ii) What is the after-tax price that the sellers now keep? (iii) Calculate the producer surplus after the tax. (c) Is the demand price elastic, inelastic, or unit elastic between the prices of $5 and $6 ? Explain. (d) Assuming no externalities, how does the tax affect allocation efficiency? Explain