Figure 8-9
The vertical distance between points A and C represents a tax in the market.
-Refer to Figure 8-9.The imposition of the tax causes the price paid by buyers to
A)increase from $600 to $800.
B)increase from $300 to $800.
C)decrease from $600 to $300.
D)remain unchanged at $600.

Question

Figure 8-9
The vertical distance between points A and C represents a tax in the market. 
-Refer to Figure 8-9.The imposition of the tax causes the price paid by buyers to
A)increase from $600 to $800. 
B)increase from $300 to $800. 
C)decrease from $600 to $300. 
D)remain unchanged at $600.

Quizplus · Accepted Answer

The imposition of the tax causes the price paid by buyers to increase from $600 to $800, indicating that the tax burden is shared between buyers and sellers, with buyers paying a higher price.

Figure 8-9 the Vertical Distance Between Points a and C Represents a Represents