The following question are based on the following diagram:

-Assume an excise tax is imposed on the sale of a good described by the diagram.The excise tax is best illustrated by

Question

The following question are based on the following diagram:
 
-Assume an excise tax is imposed on the sale of a good described by the diagram.The excise tax is best illustrated by

Quizplus · Accepted Answer

An excise tax on the sale of a good is illustrated by the vertical distance between the supply and demand curves after the tax is imposed. This distance represents the per unit tax on the good. In the given options, DF represents this vertical distance correctly, indicating the tax amount per unit sold.

The Following Question Are Based on the Following Diagram