Figure 6-28
-Refer to Figure 6-28.Suppose a tax of $6 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Question

Figure 6-28 
-Refer to Figure 6-28.Suppose a tax of $6 per unit is imposed on this market.How much will sellers receive per unit after the tax is imposed?

Quizplus · Accepted Answer

Sellers will receive $4 per unit after the tax is imposed because the tax reduces the price received by sellers by the full amount of the tax, which is $6. If the initial price was $10, sellers will receive $10 - $6 = $4.

Figure 6-28 -Refer to Figure 6-28.Suppose a Tax of $6 Per Unit