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 received by sellers to
A)decrease by $4.
B)increase by $4.
C)decrease by $6.
D)increase by $6.

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 received by sellers to
A)decrease by $4. 
B)increase by $4. 
C)decrease by $6. 
D)increase by $6.

Quizplus · Accepted Answer

The imposition of a tax typically causes the price received by sellers to decrease because the tax effectively increases the cost of the product for buyers, leading to a lower equilibrium price that sellers receive after the tax is accounted for.

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