Question 1 In most cases, a sales tax reduces economic efficiency because O a sales tax lowers prices for consumers and increase the firms' profits. O a sales tax reduces deadweight loss. O a sales tax on a market can increase the equilibrium quantity in the market. O a sales tax can increase both consumer surplus and producer surplus. O the decrease in consumer surplus and producer surplus combined is greater than the tax revenue amount.Question 2 The deadweight loss from a tax is likely to be greater with a good that has O many substitutes. O few substitutes. O an inelastic demand. O an inelastic supply.Question 3 As a tax rate grows larger and larger, eventually O supply can outweigh demand. O willingness to pay can outweigh deadweight loss. O demand can outweigh supply. O deadweight loss can outweigh tax revenue.Qu est-ion 4 1 pts Consider the two markets: {i} market for milk vs {ii} market for luxury cars Suppose a sales tax is imposed on the two markets. In which market the sellers' share of tax burden is greater than the buyers' share? Explain. O Seller's share of tax burden is greater in the market for milk because demand for milk is elastic, meanwhile the demand for luxury cars is inelastic. O Seller's share of tax burden is greater in the market for milk because buyers will stop buying milk after a sales tax is imposed. Meanwhiler buyers will still buy luxury ca rs after a sales tax is imposed. O Seller's share of tax burden is greater in the market for luxury cars because demand for milk is inelastic. meanwhile the demand for luxury cars is elastic. O Seller's share of tax burden is greater in the market for milk because in the market for milk. the producer surplus is greater than the willingness to pay. Question 5 Suppose for a seller, the seller's willingness to sell for a product is greater than the price of the product? What will happen? O The seller will sell the product and the PS from selling the product is negative. O The seller will not sell the product. O The seller will sell the product and the PS from selling the product is positive. O The seller will sell the product and the CS from selling the product is negative.John buys pizzas. His demand table for pizzas is shown as follows: Use the given information to answer questions 7 - 10. Price of a pizza slice Quantity demanded (slices) $6 1 $5 2 $4 3 $3 4 $2 5 $1 $0