Figure 1 Prk e Ewaply i [ & @ T mrnlty 20. In Figure 1 above, suppose a tax of T1 is imposed in this market. Which area represents the deadweight loss of tax? a. X b. Y c. L dX+Y Page 3ol 7 Intro to Econ - Microeconomics (ECON-1102-005) Assignment #2 (15%), Due Feb 26, 2024, 11:30 AM, to be submitted in Class Full Name: Student I1D: 21. In Figure | above, what is the revenue earned from a tax of T1? aX+Z b. X c. Y dX+Y 22, In Figure | above, what is the deadweight loss of the tax T2? a U b VYZT c. YZT 4. YT 23, In Figure | above, what is the increase in the deadweight loss when the tax rises from T to T;? a VYTZ-T=VYZ b. VYTZ-Z=VYT c. VYTZ-Y=VTZ d VYTZ-V=YTZ 24, 19. In Figure |1 above, what is the change in revenue when the tax rises from T1 to T27 alU+X+W-(X+Y)=U+W-Y bU+X+W - (W+Y)=U+X-Y cU+X+W-(U+tY)=X+W-Y dU+X+W-(W+X)=U+2X 25, What can the government do if the marginal benefits of public funds are greater than the marginal cost of public funds? a. The government can increase social welfare by b. The government can increase social welfare by increasing taxes and expenditures. decreasing taxes and expenditures. . The government can decrease social welfare by d. The government can decrease social welfare by increasing taxes and expenditures. decreasing taxes and expenditures. 26. Consider the following information: Suppose a tax is levied at $1 per unit. Now suppose the tax increases by 15 percent to $1.15 per unit and the equilibrium size of the market (tax base) shrinks by 2 percent in response to the tax increase. Based on the above information, what is the increase in tax revenue? a. 10 percent b. 13 percent c. 16 percent d. 21 percent 27. How is the benefit from a tax measured? a. by how much the public gains from the government spending the tax revenue b. by the cost of collecting the tax c. by the interest saved because the government did not borrow the funds d. by the government's surplus, which is tax revenue minus government expenditures