Figure 6-11
-Refer to Figure 6-11.The amount of the tax per unit is

Name: Figure 6-11 -Refer to Figure 6-11.The amount of the tax per unit is
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Question

Figure 6-11 
-Refer to Figure 6-11.The amount of the tax per unit is

Quizplus · Accepted Answer

The tax per unit is equal to the difference between the original supply curve (S1) and the new supply curve with the tax (S2) at any quantity. At a quantity of 4, for example, the original supply curve intersects the price axis at $4. The new supply curve, including the tax, intersects the price axis at $6.50. Therefore, the tax per unit is $2.50.

Figure 6-11 -Refer to Figure 6-11.The Amount of the Tax Per Unit