Figure 6-12

-Refer to Figure 6-12.What is the per-unit burden of the tax on buyers

Question

Figure 6-12
 
-Refer to Figure 6-12.What is the per-unit burden of the tax on buyers

Quizplus · Accepted Answer

The per-unit burden of the tax on buyers is the difference between the price consumers pay before and after the tax is imposed, which is represented by the difference between P₂ and P₁. Therefore, the correct choice is B.

Choice A (P₂ minus P₀) is incorrect because this difference represents the overall price increase, including the portion of the tax paid by sellers.

Choice C (P₁ minus P₀) is incorrect because this difference represents the initial price consumers pay, without taking the tax into account.

Choice D (Q₁ minus Q₀) is incorrect because this difference represents the change in quantity demanded, which is not relevant to the per-unit burden of the tax on buyers.

Figure 6-12 -Refer to Figure 6-12.What Is the Per-Unit Burden of the Per-Unit