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Debora [2.8K]
2 years ago
7

Suppose a $3 per-unit tax is placed on this good. the per-unit burden of the tax on sellers is

Business
1 answer:
Leto [7]2 years ago
6 0

Suppose a $3 per-unit tax is placed on this good. the per-unit burden of the tax on sellers is $1 .

Explanation:

The demand curve and the production curve are cross-secting before the tax level reaches $4.

The supply curve moves to the left when the tax of $3 was levied, so that the new price payable by consumers is $6 where the new supply curve and the demand curve intersect, while the seller collects $3 where the original supply curve and the demand curve intersects.

hence, the per unit burden of the tax imposed on buyers is $6 - $4 = $2

while the burden on sellers is $4 - $3 = $1

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