Figure 6-27

-Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer pays $6.

Name: Figure 6-27 -Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer pays $6.
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Question

Figure 6-27
 
-Refer to Figure 6-27.If the government places a $2 tax in the market,the buyer pays $6.

Quizplus · Accepted Answer

In Figure 6-27, the equilibrium price is $4 and the equilibrium quantity is 8. If a $2 tax is placed on the market, the supply curve will shift up by $2 and the new equilibrium price will be $6 ($4 + $2 tax). Therefore, the buyer will pay the new equilibrium price of $6.

Figure 6-27 -Refer to Figure 6-27.If the Government Places a $2 Tax