Use the following to answer questions:
Figure: Soda Market
-(Figure: Soda Market) After the imposition of a per-unit tax on production, consumers pay $5.00 per unit and producers receive $4.30 per unit. What is the value of the per unit tax?
A) $5.00
B) $4.30
C) $0.70
D) $0.30

Question

Use the following to answer questions:
Figure: Soda Market 
-(Figure: Soda Market) After the imposition of a per-unit tax on production, consumers pay $5.00 per unit and producers receive $4.30 per unit. What is the value of the per unit tax?
A) $5.00 
B) $4.30 
C) $0.70 
D) $0.30

Quizplus · Accepted Answer

The per-unit tax is the difference between what consumers pay ($5.00) and what producers receive ($4.30), which is $0.70. Therefore, the correct answer choice is C.

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