Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.When the tax is imposed in this market,the price sellers effectively receive is
A)$4.
B)$6.
C)$10.
D)$16.

Question

Figure 8-6
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-6.When the tax is imposed in this market,the price sellers effectively receive is
A)$4. 
B)$6. 
C)$10. 
D)$16.

Quizplus · Accepted Answer

The price sellers effectively receive is the price buyers pay minus the amount of the tax. In this case, the price buyers pay is $10 (point E) and the tax is $4 (vertical distance between points E and A), so the price sellers receive is $6 (point A).

Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents