Figure 6-8

-Refer to Figure 6-8.The price that sellers receive after the tax is imposed is

Question

Figure 6-8
 
-Refer to Figure 6-8.The price that sellers receive after the tax is imposed is

Quizplus · Accepted Answer

The new equilibrium price (after the tax is imposed) is $5. This is because the buyers are willing to pay $7 for the good, but the sellers receive only $5 after the tax is imposed. Therefore, the tax burden is split between the buyers and the sellers, but the sellers bear a greater burden by receiving a lower price.

Figure 6-8 -Refer to Figure 6-8.The Price That Sellers Receive After the Sellers