Figure 8-3 The vertical distance between points A and B represents a tax in the market. PRICE 232*ARZ222- 44 40 36 24 20 16 12 • Supply Demand 6 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Refer to Figure 8-3. Suppose a 20 th unit of the good were sold by a seller to a buyer. Which of the following statements is correct? a. For the 20 th unit, the difference between the buyer's value and the seller's cost is less than the tax per unit. b. For the 20 th unit, the difference between the buyer's value and the seller's cost is equal to the tax per unit c. For the 20 th unit, the difference between the buyer's value and the seller's cost is greater than the tax per unit. d. It makes sense for the buyer to buy and for the seller to sell the 20 th unit, with or without the tax in place

Figure 8-3 The vertical distance between points A and B represents a tax in the market. PRICE 232*ARZ222- 44 40 36 24 20 16 12 • Supply Demand 6 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Refer to Figure 8-3. Suppose a 20 th unit of the good were sold by a seller to a buyer. Which of the following statements is correct? a. For the 20 th unit, the difference between the buyer's value and the seller's cost is less than the tax per unit. b. For the 20 th unit, the difference between the buyer's value and the seller's cost is equal to the tax per unit c. For the 20 th unit, the difference between the buyer's value and the seller's cost is greater than the tax per unit. d. It makes sense for the buyer to buy and for the seller to sell the 20 th unit, with or without the tax in place

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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