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

Question

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

Quizplus · Accepted Answer

The per-unit burden of the tax on buyers is the difference between the price paid by buyers after the tax (point B) and the price they would have paid without the tax (point C). Therefore, the per-unit burden is $4 ($16 - $12).

Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents