Reference: Ref 6-1 (Figure: Tax on Sellers) If a $3 tax per unit purchased was placed on buyers instead of sellers, buyers would pay ________ and sellers would receive ________.
A) $3; $6
B) $6; $3
C) $4; $6
D) $4; $3

Question

Reference: Ref 6-1 (Figure: Tax on Sellers) If a $3 tax per unit purchased was placed on buyers instead of sellers, buyers would pay ________ and sellers would receive ________.
A) $3; $6 
B) $6; $3 
C) $4; $6 
D) $4; $3

Quizplus · Accepted Answer

If a $3 tax is placed on buyers instead of sellers, the demand curve would shift down by $3. This means that buyers would bear the burden of the tax by paying a higher price of $6 per unit (original price of $3 plus the $3 tax). The sellers would receive the same $3 per unit they were receiving before, and would not bear any burden of the tax. Therefore, the correct answer is B, with buyers paying $6 and sellers receiving $3.