Figure 8-2

-Refer to Figure 8-2.The price that buyers effectively pay after the tax is imposed is

Name: Figure 8-2 -Refer to Figure 8-2.The price that buyers effectively pay after the tax is imposed is
Brand: Quizplus
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Question

Figure 8-2
 
-Refer to Figure 8-2.The price that buyers effectively pay after the tax is imposed is

Quizplus · Accepted Answer

The price that buyers effectively pay after the tax is imposed is P₃. This is because the tax is a per-unit tax, which means that the price of the good will increase by the amount of the tax. In this case, the tax is $1 per unit, so the price of the good will increase from P₂ to P₃.

Figure 8-2 -Refer to Figure 8-2.The Price That Buyers Effectively Pay After