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9. In the diagram DD and SS are the market demand and supply curves for wine. Which of the following effects on the output and price of wine will result from abolishing indirect tax on wine? D Price S (including tax) S D 0 Quantity of wine demanded/supplied per time period A A fall in output and a fall in price. B A fall in output and a rise in price. C A rise in output and a fall in price. D A rise in output and a rise in price.5. Price Y Q S1 2 P V W D U 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 OQYM AnswerJan 04 6. Given a downward sloping demand curve from left to right and an upward sloping supply curve from left to right, a specific indirect tax on a commodity will A raise consumer surplus B raise the price by less than the tax C cause a movement down, the demand curve' D raise the price by more than the tax. Answer (1)June 1 04 4. The following data represent the daily demand and supply schedules for a good. (You may use the blank column in your explanation). Price per unit Quantity demanded Quantity supplied Quantity supplied (E) (units) (units) (after subsidy) (units) 16 2000 2800 14 2200 2600 12 2400 2400 . 10 2600 2200 8 2800 2000 If the government introduces a subsidy of f4 per unit to be paid to the producers of the good, the new equilibrium price will be A E8 B E10 C E12 D E14 AnswerThe diagram shows the impact of a government subsidy which shifts the supply curve for a good om SIS; to 8352. Which area represents total government expenditure on the subsidy? A ORYL B PGYR C PXYR "D m