Figure 4-24 -Refer to Figure 4-24. The amount of the tax on each unit of the good is A)P₃ - P₁. B)P₃ -P₂. C)P₂- P₁. D)Q₂ - Q₁.

Name: Figure 4-24 -Refer to Figure 4-24. The amount of the tax on each unit of the good is A)P 3 - P 1 . B)P 3 -P 2 . C)P 2 - P 1 . D)Q 2 - Q 1 .
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Question

Quizplus · Accepted Answer

The tax is the vertical distance between the supply curve and the demand curve at the equilibrium quantity.

Figure 4-24 -Refer to Figure 4-24. the Amount of the Tax on the Tax