-The figure shows the market for books before and after a sales tax is introduced. The tax on books is _______ A book, buyers pay _______ of tax per book, and the government's tax revenue is _______ A week.

Question

Quizplus · Accepted Answer

The tax on books is the difference between what buyers pay and what sellers receive, which is $1.20. Buyers pay $0.80 of the tax per book, as seen by the shift in the demand curve. The government's tax revenue is the tax per book multiplied by the quantity sold, which is $12 a week.

-The Figure Shows the Market for Books Before and After