The document discusses the impacts of a 20 SAR tax on pizza suppliers. It shows the original supply and demand curves with an equilibrium price and quantity. It then illustrates how a 20 SAR tax shifts the supply curve up by 20 SAR, resulting in a new equilibrium price and quantity. The questions ask about the new price, quantity sold, total revenue, taxes paid by supplier and buyer, and supplier profits after paying the tax. Diagrams with supply, demand and tax curves are provided to analyze the market impacts of the tax policy change.

1. 1.What is the equilibrium price before the tax?
2.What is the equilibrium quantity?
3. If the tax is 20 SAR, what will be the new price?
4. If the tax is 20 SAR, how many pizza would be sold?
5.What will be the total revenue with the new tax?
6. How much tax will the seller pay?
7. How much tax will the buyer pay?
8. How much will the total tax be?
9. How much did the seller earn after paying the tax?
10.Why isn’t the new price 70?
Pizza Tax Questions

2. 0
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Demand
Pizza Tax

3. 0
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Supply
no tax

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no tax

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no tax

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Supply
no tax

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Supply
no tax

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Supply
no tax

9. 0
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Pizza Tax
Supply
no tax
Tax on Supplier of 20
Shift the curve up by 20

10. 0
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Price
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Demand
Pizza Tax
Supply
no tax
Tax on Supplier of 20
Shift the curve up by 20

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Price
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Demand
Pizza Tax
Supply
no tax
Tax on Supplier of 20
Shift the curve up by 20

12. 0
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Price
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Demand
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Supply
no tax
Tax on Supplier of 20
Shift the curve up by 20

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Supply
no tax
Tax on Supplier of 20
Shift the curve up by 20

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Supply
no tax
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with tax
Tax on Supplier of 20
Shift the curve up by 20

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with tax
Tax on Supplier of 20
Shift the curve up by 20

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Supply
no tax
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with tax
Tax on Supplier of 20
Shift the curve up by 20

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no tax
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with tax
Tax on Supplier of 20
Shift the curve up by 20

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Pizza Tax
Buyer Price
Supply
no tax
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with tax
Tax on Supplier of 20
Shift the curve up by 20

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Buyer Price
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no tax
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with tax
Tax on Supplier of 20
Shift the curve up by 20

20. 0
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with tax
Tax on Supplier of 20
Shift the curve up by 20

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with tax
Tax on Supplier of 20
Shift the curve up by 20

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with tax
Tax on Supplier of 20
Shift the curve up by 20

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with tax
Tax on Supplier of 20
Shift the curve up by 20

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Pizza Tax
Buyer Price
Seller Price
Supply
no tax
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with tax
Tax on Supplier of 20
Shift the curve up by 20

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Buyer Price
Seller Price
Taxes
of 20
Supply
no tax
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with tax
Tax on Supplier of 20
Shift the curve up by 20

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Buyer Price
Seller Price
Taxes
of 20
Supply
no tax
Supply
with tax
Tax on Supplier of 20
Shift the curve up by 20

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Price
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Pizza Tax
Buyer Price
Seller Price
Taxes
of 20
Supply
no tax
Supply
with tax
Tax on Supplier of 20
Shift the curve up by 20

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Price
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Pizza Tax
Buyer Price
Seller Price
Taxes
of 20
Supply
no tax
Supply
with tax
Tax on Supplier of 20
Shift the curve up by 20