Figure 6-9

-Refer to Figure 6-9.The per-unit burden of the tax is

Question

Figure 6-9
 
-Refer to Figure 6-9.The per-unit burden of the tax is

Quizplus · Accepted Answer

The per-unit burden of the tax is the difference between the price paid by buyers and the price received by sellers. In this case, the price paid by buyers with the tax is $24 and the price received by sellers is $18, which means the per-unit burden of the tax is $6 on the sellers. Similarly, the price received by buyers without the tax is $20 and the price paid by sellers is $16, which means the per-unit burden of the tax is $4 on the buyers. Therefore, the correct answer is C, $4 on buyers and $6 on sellers.

Figure 6-9 -Refer to Figure 6-9.The Per-Unit Burden of the Tax Is