Figure 8-3
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-3.The per-unit burden of the tax on sellers is
A)P3 - P1.
B)P3 - P2.
C)P2 - P1.
D)P4 - P3.

Question

Figure 8-3
The vertical distance between points A and C represents a tax in the market. 
-Refer to Figure 8-3.The per-unit burden of the tax on sellers is
A)P3 - P1. 
B)P3 - P2. 
C)P2 - P1. 
D)P4 - P3.

Quizplus · Accepted Answer

The per-unit burden of the tax on sellers is the difference between the price they receive after the tax (P2) and the price they would have received without the tax (P1).

Figure 8-3 the Vertical Distance Between Points a and C Represents a Represents