the figure shows the market for beer. the government plans to impose a unit tax in this market. how much of…

the figure shows the market for beer. the government plans to impose a unit tax in this market. how much of the tax is paid by buyers?\na. $2\nb. $5\nc. $7\nd. $12

the figure shows the market for beer. the government plans to impose a unit tax in this market. how much of the tax is paid by buyers?\na. $2\nb. $5\nc. $7\nd. $12

Answer

Explanation:

Step1: Identify pre - tax and post - tax price for buyers

Pre - tax equilibrium price is $22. After tax, the price buyers pay is $27.

Step2: Calculate tax paid by buyers

The tax paid by buyers is the difference between the post - tax price they pay and the pre - tax price. So, $27−22 = 5$.

Answer:

B. $5