Worksheet 50.4: Excise Taxes and Surplus 1. When an excise tax is imposed on the supplier of a product by government, what affect will this have on the supply curve? a) What will happen to the equilibrium price in this case? b) What will happen to the equilibrium quantity in this case? c) What do we call what is driven between the price paid by consumers and the price received by producers? d) What is the result of what occurs in part 'c' above to consumers and producers? e) Is this tax efficient for the market? How do you know? 2. If an excise tax is imposed on consumers of a product, what affect will this have on the demand curve? a) What will happen to the equilibrium price in this case? b) What will happen to the equilibrium quantity in this case? c) What happens to the price the consumer pays and the price the supplier receives? 3. What is the term that economists use to describe who actually pays a tax