Exhibit 20-2

-Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X,as shown by the shift of S₁ to S₂.What is the per-unit tax equal to?

Question

Exhibit 20-2
Exhibit 20-2 -Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X,as shown by the shift of S<sub>1</sub> to S<sub>2</sub>.What is the per-unit tax equal to? A) $1.00 B) $2.25 C) $0.25 D) $4.00 E) $1.25

Exhibit 20-2 -Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X,as shown by the shift of S<sub>1</sub> to S<sub>2</sub>.What is the per-unit tax equal to? A) $1.00 B) $2.25 C) $0.25 D) $4.00 E) $1.25

-Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X,as shown by the shift of S₁ to S₂.What is the per-unit tax equal to?

Quizplus · Accepted Answer

The per-unit tax can be calculated by finding the vertical distance between the original equilibrium price ($5) and the new price after the tax is implemented ($7.25). This distance is $2.25, which represents the per-unit tax.

Exhibit 20-2 -Refer to Exhibit 20-2.The Market for Good X Is Initially