Use the figure below to answer the following questions. Figure 6.3.2
-Refer to Figure 6.3.2.The buyers' share of the tax is
A)zero.
B)$0.50.
C)$1.00.
D)$1.50.
E)$2.00.

Question

Use the figure below to answer the following questions.  Figure 6.3.2
-Refer to Figure 6.3.2.The buyers' share of the tax is
A)zero. 
B)$0.50. 
C)$1.00. 
D)$1.50. 
E)$2.00.

Quizplus · Accepted Answer

The buyers' share of the tax is equal to the difference between the new and old equilibrium price, which is $2.50 - $2.00 = $0.50. Therefore, the correct answer is B. As for the best choice, it depends on the specific context and goals of the decision maker. More information is needed to provide a specific recommendation.

Use the Figure Below to Answer the Following Questions