Use the following to answer questions:
Figure: Tax on Buyers 2
-(Figure: Tax on Buyers 2) In the diagram, the sellers receive _____ without the tax and receive _____ with the tax.
A) $8.50; $6.50
B) $6.50; $8.50
C) $7.00; $6.50
D) $7.00; $5.00

Question

Use the following to answer questions:
Figure: Tax on Buyers 2 
-(Figure: Tax on Buyers 2) In the diagram, the sellers receive _____ without the tax and receive _____ with the tax.
A) $8.50; $6.50 
B) $6.50; $8.50 
C) $7.00; $6.50 
D) $7.00; $5.00

Quizplus · Accepted Answer

Without the tax, the equilibrium price is $7.00, which is what sellers receive. With the tax, the price sellers receive is reduced to $6.50.

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