Figure 8-2
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-2.The imposition of the tax causes the quantity sold to
A)increase by 1 unit.
B)decrease by 1 unit.
C)increase by 2 units.
D)decrease by 2 units.

Question

Figure 8-2
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-2.The imposition of the tax causes the quantity sold to
A)increase by 1 unit. 
B)decrease by 1 unit. 
C)increase by 2 units. 
D)decrease by 2 units.

Quizplus · Accepted Answer

The imposition of the tax causes the quantity sold to decrease by 1 unit because the tax increases the price of the product, which reduces the quantity demanded.

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