Use the figure below illustrating the impact of an excise tax to answer the following question(s).
Figure 4-6
-Refer to Figure 4-6. The amount of the excise tax I is
A) $.50.
B) $1.50.
C) $1.00.
D) $2.00.

Question

Use the figure below illustrating the impact of an excise tax to answer the following question(s).
Figure 4-6 
-Refer to Figure 4-6. The amount of the excise tax I is
A) $.50. 
B) $1.50. 
C) $1.00. 
D) $2.00.

Quizplus · Accepted Answer

The excise tax is the difference between the price buyers pay and the price sellers receive. If Figure 4-6 shows these prices, the tax would be $1.00.

Use the Figure Below Illustrating the Impact of an Excise