Figure 4-24

-Refer to Figure 4-24.The price that sellers receive after the tax is imposed is
A)P₁.
B)P₂.
C)P₃.
D)impossible to determine from the figure.

Name: Figure 4-24 -Refer to Figure 4-24.The price that sellers receive after the tax is imposed is A)P₁. B)P₂. C)P₃. D)impossible to determine from the figure.
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Question

Figure 4-24
 
-Refer to Figure 4-24.The price that sellers receive after the tax is imposed is
A)P₁. 
B)P₂. 
C)P₃. 
D)impossible to determine from the figure.

Quizplus · Accepted Answer

The price that sellers receive after the tax is imposed is P₁, because the tax is a per-unit tax, and the supply curve shifts up by the amount of the tax.

Figure 4-24 -Refer to Figure 4-24.The Price That Sellers Receive After the Sellers