Use the following to answer question:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.If a $1 per unit tax is imposed,the price of good X will increase by (round all calculations to two decimal places):

Question

Use the following to answer question: 
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.If a $1 per unit tax is imposed,the price of good X will increase by (round all calculations to two decimal places):

Quizplus · Accepted Answer

When a tax is imposed on a good, the price increase is typically shared between buyers and sellers, depending on the elasticity of demand and supply. Without specific details on the elasticities, it's not possible to determine the exact split of the tax burden. However, the given options suggest a partial tax pass-through to consumers, making $0.60 a plausible estimate given the context, assuming it reflects a scenario with certain demand and supply elasticities.

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