Tuesday, December 9th

Agenda:

1. Stamp HW (A#28)
2. Distribution of Wealth and Taxes
3. VIDEO LINK...help on Excise Taxes (watch and learn before the test tomorrow...you will be asked to identify this on the test)

Homework:

1. Unit 6 Exam Tomorrow

Answers to Excise Tax Question from PowerPoint in Class (use above video link to practice excise tax identification):

1. Tax Per Unit - $3 (difference of vertical distance between supply curves
2. Total Tax Revenue - $30 (per unit tax multiplied by equilibrium quantity)
3. Amount of tax paid by consumers - $20 total or $2 per unit (difference between pre-tax price and post-tax price multiplied by quantity)
4. Amount of tax paid by producers - $10 total or $1 per unit (difference between total tax revenue and amount paid by consumers)
5. Total Expenditures - $140 (price multiplied by quantity)
6. Total Revenue for firms - $110 (total expenditures minus total tax)