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Please show all steps and draw the graph. Thanks. 2009 AP MICROECONOMICS FREE-RESPONSE QUESTIONS 36 PRICE ($) S + Tax S $6 $4 $2 0

Please show all steps and draw the graph. Thanks.

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2009 AP" MICROECONOMICS FREE-RESPONSE QUESTIONS 36 PRICE ($) S + Tax S $6 $4 $2 0 60 90 QUANTITY 2. The graph above illustrates the market for calculators. S denotes the current supply curve, and D denotes the demand curve. (a) Calculate the producer surplus before the tax. (b) Now assume a per-unit tax of $2 is imposed whose impact is shown in the graph above. (i) Calculate the amount of tax revenue. (ii) What is the after-tax price that the sellers now keep? (iii) Calculate the producer surplus after the tax. his (c) Is the demand price elastic, inelastic, or unit elastic between the prices of $5 and $6 ? Explain. (d) Assuming no externalities, how does the tax affect allocationficiency? Explain

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