AI-generated, not reviewedHL only8 marks, command term Calculate
The figures are invented. A diagram shows the market for a soft drink, with price ($ per crate) on the vertical axis and quantity (crates per day) on the horizontal axis. Before any tax the equilibrium price is $30 and the quantity is 500. The government places a tax of $6 per crate on producers. The supply curve shifts up by $6. At the new equilibrium the quantity is 400, consumers pay $34 and producers keep $28 per crate. (i) Calculate the government's daily tax revenue. [2] (ii) Calculate how much of the daily tax revenue is paid by consumers and how much by producers. [2] (iii) Calculate the change in consumers' daily expenditure on the drink. [2] (iv) Calculate the welfare loss caused by the tax. [2]
HL Paper 3-style calculation (standalone practice; not an IB question).