Asked by Stephan Polit on Jul 18, 2024
Verified
Refer to Figure 8-2. The imposition of the tax causes the price paid by buyers to
A) decrease by $6.
B) increase by $6.
C) decrease by $4.
D) increase by $4.
Price Paid
Price paid refers to the actual amount of money exchanged for the acquisition of a good or service.
Tax
Tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
- Comprehend the impact of taxation on purchasers and vendors within the marketplace.
- Understand the distribution of tax burden among purchasers and vendors.
Verified Answer
AM
Astri MutiarJul 18, 2024
Final Answer :
B
Explanation :
The imposition of a tax typically causes the price paid by buyers to increase as the tax shifts the supply curve upwards (or to the left), leading to a higher equilibrium price that buyers face.
Learning Objectives
- Comprehend the impact of taxation on purchasers and vendors within the marketplace.
- Understand the distribution of tax burden among purchasers and vendors.