Figure 6-17

-Refer to Figure 6-17. If the government places a $2 tax in the market, the buyer pays $6.

Name: Figure 6-17 -Refer to Figure 6-17. If the government places a $2 tax in the market, the buyer pays $6.
Brand: Quizplus
Rating: 4.8 (53 reviews)

Question

Figure 6-17
  ​
-Refer to Figure 6-17. If the government places a $2 tax in the market, the buyer pays $6.

Quizplus · Accepted Answer

The tax is a vertical shift of the supply curve. The buyer pays the equilibrium price, which is the price at which the supply and demand curves intersect. The tax increases the price that the seller receives, but the buyer still pays the equilibrium price.

Figure 6-17 ​

Figure 6-17