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plz give correct answers of both in 20 mins i will thumb up
Question 18 Part 1 of a 2-part question: Suppose the market for Uber rides is currently in the unregulated, perfectly competitive equilibrium shown in the diagram, with Q* rides being provided for a per price of $5/ride. (This must be a market where everyone travels the same distance!) $/ride S 5 D Rides X Q* Now suppose a sales tax of $0.50/ride is imposed on the market, requiring
Rides Q* Х Now suppose a sales tax of $0.50/ride is imposed on the market, requiring Uber drivers to collect the tax from riders and hand the tax revenues over to the government. Relative to the no-tax equilibrium shown in the diagram, this tax will cause everything except: O the price paid by consumers to increase from $5/ride to $5.50/ride. a decrease in consumer surplus. O a decrease in producer burplus. a deadweight loss. a decrease in social welfare.
Question 19 Part 2 of a 2-part question: Following up on the preceding question, now suppose the tax is dropped and, in its place, a production quota is imposed that limits the Uber market to the same number of total rides that were provided under the tax. Relative to what the market looked like with the tax, this quota causes: O an increase in consumer surplus. O a decrease in consumer surplus. O an increase in producer surplus. O a decrease in producer surplus. O a decrease in social welfare.