Suppose a tax on sellers has been imposed in the graph shown.What is the total tax paid per unit of the good?

Question

Quizplus · Accepted Answer

In the graph, the distance between the original supply curve (S) and the new supply curve (S1) is 10 units (from the intersection point with the y-axis to the new supply curve). This means that the tax imposed on sellers is $10 per unit of the good.

Therefore, the total tax paid per unit of the good is $10.

Suppose a Tax on Sellers Has Been Imposed in the Graph