In the diagram above,D represents the original demand curve,S represents the original supply curve,and S' represents the supply curve once a per-unit tax is imposed.
-Refer to the diagram above.The burden of the tax to consumers is measured by the distance
A) EA.
B) AG.
C) HJ.
D) 0E.
E) 0A.

Question

In the diagram above,D represents the original demand curve,S represents the original supply curve,and S' represents the supply curve once a per-unit tax is imposed.
-Refer to the diagram above.The burden of the tax to consumers is measured by the distance
A) EA. 
B) AG. 
C) HJ. 
D) 0E. 
E) 0A.

Quizplus · Accepted Answer

The burden of the tax to consumers is measured by the vertical distance between the original and new equilibrium price, which is represented by EA in the diagram.

In the Diagram Above,D Represents the Original Demand Curve,S Represents