Figure 8-2
The vertical distance between points C and D represents a tax in the market.

-Refer to Figure 8-2. The imposition of the tax causes the price paid by buyers to
A)decrease by $6.
B)increase by $6.
C)decrease by $4.
D)increase by $4.

Question

Figure 8-2
The vertical distance between points C and D represents a tax in the market.
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-Refer to Figure 8-2. The imposition of the tax causes the price paid by buyers to
A)decrease by $6. 
B)increase by $6. 
C)decrease by $4. 
D)increase by $4.

Quizplus · Accepted Answer

The imposition of a tax typically causes the price paid by buyers to increase as the tax shifts the supply curve upwards (or to the left), leading to a higher equilibrium price that buyers face.

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