Use the following to answer questions:
Figure: Tax on Sellers
-(Figure: Tax on Sellers) In the diagram, buyers pay _____ without the tax and _____ with the tax.
A) $6; $4
B) $4; $6
C) $4; $7
D) $6; $7

Question

Use the following to answer questions:
Figure: Tax on Sellers 
-(Figure: Tax on Sellers) In the diagram, buyers pay _____ without the tax and _____ with the tax.
A) $6; $4 
B) $4; $6 
C) $4; $7 
D) $6; $7

Quizplus · Accepted Answer

Without the tax, buyers pay the equilibrium price of $4. With the tax, the price buyers pay increases to $7.

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