Figure 8-2

-Refer to Figure 8-2.The per unit burden of the tax on buyers is
A)P₃ - P₁.
B)P₃ - P₂.
C)P₂ - P₁.
D)Q₂ - Q₁.

Name: Figure 8-2 -Refer to Figure 8-2.The per unit burden of the tax on buyers is A)P₃ - P₁. B)P₃ - P₂. C)P₂ - P₁. D)Q₂ - Q₁.
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Question

Figure 8-2
 
-Refer to Figure 8-2.The per unit burden of the tax on buyers is
A)P₃ - P₁. 
B)P₃ - P₂. 
C)P₂ - P₁. 
D)Q₂ - Q₁.

Quizplus · Accepted Answer

The per unit burden of the tax on buyers is equal to the difference between the price paid by buyers before the tax (P₂) and the equilibrium price after the tax (P₃). Therefore, the correct answer is (P₃ - P₂).

Figure 8-2 -Refer to Figure 8-2.The Per Unit Burden of the Tax