The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax. The government imposes a $10 per unit tax on buyers of MP3 players.
-After the tax is imposed,the price received by the seller is ________ per MP3 player.
A) $105
B) $100
C) $95
D) $110
E) $90

Question

The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax. The government imposes a $10 per unit tax on buyers of MP3 players.
-After the tax is imposed,the price received by the seller is ________ per MP3 player.
A) $105 
B) $100 
C) $95 
D) $110 
E) $90

Quizplus · Accepted Answer

The price received by the seller after a tax is imposed is typically lower than the market price before the tax. If the tax burden is shared between buyers and sellers, the seller receives less than the pre-tax price.

The Figure Above Shows the Market for MP3 Players, Where