Exhibit 19-2

Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S₁ to S₂. What is the per-unit tax equal to?

Question

Exhibit 19-2
Exhibit 19-2 Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S<sub>1</sub> to S<sub>2</sub>. What is the per-unit tax equal to? A) $1.00 B) $2.25 C) $0.25 D) $4.00 E) $1.25

Exhibit 19-2 Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S<sub>1</sub> to S<sub>2</sub>. What is the per-unit tax equal to? A) $1.00 B) $2.25 C) $0.25 D) $4.00 E) $1.25

Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X, as shown by the shift of S₁ to S₂. What is the per-unit tax equal to?

Quizplus · Accepted Answer

The per-unit tax is equal to the vertical distance between the original supply curve (SS1) and the new supply curve after the tax (SS1U1B12). This is equal to $2.25 ($7.25 - $5.00).

Exhibit 19-2 ​ Refer to Exhibit 19-2. the Market for Good X Is

Exhibit 19-2 Refer to Exhibit 19-2. the Market for Good X Is