Hi, these are the question. Question 1

Consider a per-unit tax equal to t that is collected from **firms**. **Use supply and demand diagram(s)** to demonstrate whether the following statement is true or false and **provide an explanation**.

"The more elastic is demand the larger is the deadweight loss of the tax"

** **

Question 2

Suppose that the Tasmanian government is considering imposing a per unit tax food products that have high sugar content. The tax is to be collected from **consumers**. The objective is to reduce the consumption of sugar to improve health outcomes. You have been hired by the Tasmanian government to evaluate the proposed tax. Use a supply and demand model to demonstrate whether the following statement is true or false and **provide an explanation**.

"The total decrease in the consumption of sugar caused by the per-unit tax collected from consumers is larger the more elastic is demand."

Question 3

Consider a per-unit tax equal to t that is collected from **firms**. Use supply and demand diagram(s) to demonstrate whether the following statement is true or false and **provide an explanation**.

"The more elastic is supply relative to demand the larger is the total tax bill paid by consumers"

**Question 4 **

Consider a per-unit tax equal to t that is collected from **consumers**. Use supply and demand diagram(s) to demonstrate whether the following statement is true or false and **provide an explanation**.

"The more elastic is demand relative to supply the larger is the total tax bill paid by consumers"

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