answer these questions.

5. S2 Price Y Q S1 2 P V W D U O M N Quantity demanded/supplied per period In the above diagram, the imposition of a tax shifts the supply curve from S, to $2. What is the incidence of the tax on producers? A UVW B UPZ C VPXW D OQYM2. 52 P, X Price S. per unit (E Y P1 - - D Q2 Q1 Quantity per time period The diagram shows how an indirect tax imposed on the sale of a product causes its supply curve to shift from S, to $2. Which of the following describes the market situation shown? A The tax is charged at a flat rate on each unit sold and its incidence falls mainly on producers. B The tax is ad valorem, added as a percentage of price, and its incidence falls mainly on consumers. C The tax is charged at a flat rate on each unit sold and its incidence falls mainly on consumers. D The tax is ad valorem, added as a percentage of price, and its incidence falls mainly on producers. Answer8. A shop sells 500kg of tea at $9 per kg. A tax of $3 per kg is imposed, raising the market price to E10. Sales fall to 300kg. What happens to the revenue of the shop after the tax is paid? A Falls by $1500. B Falls by $2400. C Rises by $500. D Falls by $2100. (a) Answer8. US cotton farmers receive a government subsidy. Which of the following effects on the output and price of cotton is likely to result from a reduction of the government subsidy? A. A fall in output and fall in price. B. A fall in output and rise in price. C. A rise in output and a fall in price. D. A rise in output and a rise in price