Figure 4-20
-Refer to Figure 4-20. The burden of the tax on sellers is
A) $1.00 per unit.
B) $1.50 per unit.
C) $2.00 per unit.
D) $3.00 per unit.

Question

Figure 4-20 
-Refer to Figure 4-20. The burden of the tax on sellers is
A) $1.00 per unit. 
B) $1.50 per unit. 
C) $2.00 per unit. 
D) $3.00 per unit.

Quizplus · Accepted Answer

The burden of the tax on sellers is the difference between the price they receive after the tax is imposed and the price they would have received without the tax. In this case, the price after the tax is $2.00 per unit, and the price without the tax is $1.00 per unit. Therefore, the burden of the tax on sellers is $1.00 per unit.

Figure 4-20 -Refer to Figure 4-20. the Burden of the Tax on the Tax