Figure 8-2
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-2.The amount of the tax on each unit of the good is
A)$1.
B)$4.
C)$5.
D)$9.

Question

Figure 8-2
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-2.The amount of the tax on each unit of the good is
A)$1. 
B)$4. 
C)$5. 
D)$9.

Quizplus · Accepted Answer

The tax on each unit of the good is the difference between the price buyers pay and the price sellers receive. In Figure 8-2, this difference is $5.

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