Figure 18-1
-According to the graph in Figure 18-1, the increase in the amount that consumers pay as a result of the tax is
A)1,000.00
B)600
C)400
D)indeterminate.

Question

Figure 18-1 
-According to the graph in Figure 18-1, the increase in the amount that consumers pay as a result of the tax is
A)1,000.00 
B)600 
C)400 
D)indeterminate.

Quizplus · Accepted Answer

From the graph, we see that the price paid by consumers increases from the original price of $800 to $1200 (a difference of $400) when the tax is imposed. Therefore, the increase in the amount that consumers pay as a result of the tax is $400.

Figure 18-1 -According to the Graph in Figure 18-1, the Increase in the Increase