Use the following to answer questions:
Figure: Soda Market
-(Figure: Soda Market) After the imposition of a per-unit tax on production, consumers pay $5.00 per unit and producers receive $4.95 per unit. What is the value of the per unit tax?
A) $5.00
B) $0.50
C) $0.05
D) $0.01

Question

Use the following to answer questions:
Figure: Soda Market 
-(Figure: Soda Market) After the imposition of a per-unit tax on production, consumers pay $5.00 per unit and producers receive $4.95 per unit. What is the value of the per unit tax?
A) $5.00 
B) $0.50 
C) $0.05 
D) $0.01

Quizplus · Accepted Answer

The per-unit tax is the difference between what consumers pay and what producers receive, which is $5.00 - $4.95 = $0.05.

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