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8. Use the figure on the right to answer the questions: (5pts) y values are in $ a) What is the amount of tax? 140
8. Use the figure on the right to answer the questions: (5pts) y values are in $ a) What is the amount of tax? 140 Supply b) What are the original equilibrium price and quantity? T Demand 120+ (after tax) Tax 100 -+ Supply c) What are the new equilibrium price and quantity? 80 (before tax) 20 40 60 80 100 d) Does the supplier suffer from the tax even though it is passed on? e) Can a government lose money by increasing taxes
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