Use the table below to answer the following questions.
Table 6.3.1
-Refer to Table 6.3.1.Suppose a sales tax of $2 a unit is imposed on the good described in the table.The buyers' share of the tax is
A)$2.00.
B)$1.50.
C)$1.00.
D)zero.
E)$2.50.

Question

Use the table below to answer the following questions.
Table 6.3.1 
-Refer to Table 6.3.1.Suppose a sales tax of $2 a unit is imposed on the good described in the table.The buyers' share of the tax is
A)$2.00. 
B)$1.50. 
C)$1.00. 
D)zero. 
E)$2.50.

Quizplus · Accepted Answer

The buyers' share of the tax is the increase in the price paid by the buyer. In this case, the price increased by $1 when the tax was imposed, so the buyers' share of the tax is $1.

Use the Table Below to Answer the Following Questions