Suppose the government decides to tax sales of pizzas. Use the following graph to answer the questions.

a. How much of a per unit tax did the government impose on pizzas?
b. Before the tax, what price do consumers pay for pizza? How does the price consumers pay change after the tax?
c. Before the tax, what price do sellers receive? How does the price sellers receive change after the tax?
d. Are consumers or producers bearing a greater burden of this tax? Briefly explain.

Transcribed Image Text:

Price 20 (dollars per pizza) S2 Supply, S, 12 10 Demand 200 Quantity (millions of pizzas) 80 100 4)