Figure 8-2
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-2. The per-unit burden of the tax on buyers is
A) $2.
B) $3.
C) $4.
D) $5.

Question

Figure 8-2
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-2. The per-unit burden of the tax on buyers is
A) $2. 
B) $3. 
C) $4. 
D) $5.

Quizplus · Accepted Answer

The per-unit burden of the tax on buyers is determined by the vertical distance between the original demand curve (D) and the demand curve after the tax (D'). This distance is equal to $3, as shown in the diagram.

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