Figure 8-3

-Refer to Figure 8-3.The amount of the tax on each unit of the good is
A)$16.
B)$14.
C)$8.
D)$6.

Name: Figure 8-3 -Refer to Figure 8-3.The amount of the tax on each unit of the good is A)$16. B)$14. C)$8. D)$6.
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Question

Figure 8-3
 
-Refer to Figure 8-3.The amount of the tax on each unit of the good is
A)$16. 
B)$14. 
C)$8. 
D)$6.

Quizplus · Accepted Answer

The tax is the vertical distance between the supply curve and the demand curve at the equilibrium quantity. This distance is $14.

Figure 8-3 -Refer to Figure 8-3.The Amount of the Tax on Each