Figure 8-11
-Refer to Figure 8-11.The length of the line segment connecting points A and B represents
A)the difference between the price paid by buyers after the tax is imposed and the price received by sellers after the tax is imposed.
B)the size of the tax.
C)the "tax wedge."
D)All of the above are correct.

Question

Figure 8-11 
-Refer to Figure 8-11.The length of the line segment connecting points A and B represents
A)the difference between the price paid by buyers after the tax is imposed and the price received by sellers after the tax is imposed. 
B)the size of the tax. 
C)the "tax wedge." 
D)All of the above are correct.

Quizplus · Accepted Answer

The length of the line segment connecting points A and B represents the difference between the price paid by buyers and the price received by sellers after the tax is imposed, which is the size of the tax and also known as the "tax wedge."

Figure 8-11 -Refer to Figure 8-11.The Length of the Line Segment Connecting