Figure 8-2
The vertical distance between points C and D represents a tax in the market.

-Refer to Figure 8-2. The per-unit burden of the tax on sellers is
A)$4.
B)$6.
C)$16.
D)$18.

Question

Figure 8-2
The vertical distance between points C and D represents a tax in the market.
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-Refer to Figure 8-2. The per-unit burden of the tax on sellers is
A)$4. 
B)$6. 
C)$16. 
D)$18.

Quizplus · Accepted Answer

The per-unit burden of the tax on sellers is the difference between the price sellers receive before and after the tax. If the tax shifts the supply curve upward by $4, then the burden on sellers is $4.

Figure 8-2 the Vertical Distance Between Points C and D Represents a Represents