Figure 6-20

-Refer to Figure 6-20.The per-unit burden of the tax on buyers of the good is

Question

Figure 6-20
 
-Refer to Figure 6-20.The per-unit burden of the tax on buyers of the good is

Quizplus · Accepted Answer

The per-unit burden of the tax on buyers is the difference between the original price and the new price with the tax included. In this case, the original price was $10 and the new price with the tax is $13. Therefore, the per-unit burden of the tax on buyers is $3. Since the seller only pays $3 per unit of the tax, the remaining burden of the tax, which is $3, falls on the buyers. Therefore, the per-unit burden of the tax on buyers is $3, which is answer choice C.

Figure 6-20 -Refer to Figure 6-20.The Per-Unit Burden of the Tax on of the Tax