Given: Suppose you are given the following market supply and demand curves for energy drinks. Table: Demand Curve Price Quantity Point Demanded (in 1,000s of cans per day) $0 20 F $5 15 E $7.50 12.5 D $10 10 C $15 5 B $20 O A Supply Curve Price Quantity Point Supplied (in 1,000s of cans per day) $5 0 G $6 5 H $7 10 - $7.50 12.5 L $8 15 K $9 20 L $10 25 M $11 30 NGraph: A 20 17.5 B 15 12.5 C 10 Price per unit D N M 7.5 EK 5 H G 2.5 F 0 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 25 27.5 30 32.5 Quantity (in 1,000s of cans per day) Demand Supply Question: Now suppose a $3 per unit tax is imposted. Assume the statutory burden specifies that firms will pay the tax. With the tax in place, how much of total tax revenue originates from the price increase experience by consumers? $78,125 per day O $93,750 per day O $15,625 per day O $3,750 per day O $30,000 per day O $187,500 per day O $225,000 per day $112,500 per day O $25,000 per day O $37,500 per day $150,000 per day O $75,000 per day $5,000 per dayQuestion: Now suppose a $3 per unit tax is imposted. Assume the statutory burden specifies that firms will pay the tax. With the tax in place, how much of total tax revenue originates from the price decrease experience by sellers? O $78,125 per day $225,000 per day $93,750 per day O $3,750 per day O $37,500 per day O $15,625 per day O $187,500 per day O $75,000 per day O $30,000 per day O $5,000 per day O $25,000 per day $112,500 per day O $150,000 per dayQuestion: Now suppose a $3 per unit tax is imposted. Assume the statutory burden specifies that firms will pay the tax. With the tax in place, find the economic burden of the tax to consumers. O 80% per day O 17% per day O 100% per day O 33% per day O 20% per day O 83% per day O 67% per dayQuestion: Now suppose a $3 per unit tax is imposted. Assume the statutory burden specifies that firms will pay the tax. With the tax in place, find the economic burden of the tax to firms. O 20% per day O 83% per day O 67% per day O 33% per day O 80% per day O 17% per day O 100% per dayQuestion: Now suppose a $3 per unit tax is imposted. Assume the statutory burden specifies that firms will pay the tax. With the tax in place, who experiences more of the economic burden of the tax? O Consumers O All of the above Firms GovernmentQuestion: Now suppose a $3 per unit tax is imposted. Assume the statutory burden specifies that firms will pay the tax. With the tax in place, who experiences less of the economic burden of the tax? O Consumers O All of the above O Government O FirmsQuestion: Now suppose a $3 per unit tax is imposted. Assume the statutory burden specifies that firms will pay the tax. Did the statutory burden predict the economic burden of the tax? O Yes. The statutory burden was placed on firms but the economic burden was experienced mostly by the government.. O No. The statutory burden was placed on firms but the economic burden was experienced mostly by firms. O Yes. The statutory burden was placed on firms but the economic burden was experienced mostly by firms. O No. The statutory burden was placed on firms but the economic burden was experienced mostly by consumers.Question: In the absence of any externalities, was the per unit tax efficient? O No. The tax caused a dead-weight loss of $25,000 per day. O Yes. The tax caused a dead-weight loss of $50,000 per day. O Yes. The tax caused a dead-weight loss of $37,500 per day O No. The tax caused a dead-weight loss of $50,000 per day. O No. The tax caused a dead-weight loss of $3,750 per day. O Yes. The tax caused a dead-weight loss of $5,000 per day. O No. The tax caused a dead-weight loss of $15,625 per day