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

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

Quizplus · Accepted Answer

The per-unit burden of the tax on buyers is represented by the vertical distance between the original demand curve and the new demand curve after the tax is imposed. The distance between points A and C is $8, which means that buyers are paying $8 extra per unit due to the tax.

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