The diagram below shows supply and demand diagrams (S and D)for some product.The government then imposes an excise tax.The new supply curve is . FIGURE 18-4
-Refer to Figure 18-4.What is the value of the tax imposed on this product,in dollars per unit?
A)$1
B)$2
C)$3
D)$4
E)$5

Question

The diagram below shows supply and demand diagrams (S and D)for some product.The government then imposes an excise tax.The new supply curve is  .  FIGURE 18-4
-Refer to Figure 18-4.What is the value of the tax imposed on this product,in dollars per unit?
A)$1 
B)$2 
C)$3 
D)$4 
E)$5

Quizplus · Accepted Answer

The vertical distance between the old supply curve and the new supply curve represents the amount of tax imposed. In this case, the new supply curve is $2 higher than the old supply curve, so the tax imposed on this product is $2 per unit.

The Diagram Below Shows Supply and Demand Diagrams (S and D)for