https://file.aiquickdraw.com/mathbot/file/17293222721669wvlsebe.jpg

The graph in the image represents the effects of a tax on a market, showing both supply (S) and demand (D) curves, as well as the tax burden. 

The vertical axis represents price, and the horizontal axis represents quantity. The tax wedge between the supply and demand curves shows the total tax, and it's divided between buyers and sellers.

To calculate the **per-unit burden of the tax on buyers**:
- The price before tax (equilibrium price) appears to be **$16**.
- After the tax is applied, the price that buyers pay increases to **$18**.
- Therefore, the per-unit burden of the tax on buyers is:
  \[
  18 - 16 = 2 \text{ dollars}
  \]

However, the figure in the image suggests that the options are related to the full tax wedge, which is more than just the buyer's share. The **total tax** is likely **$8** (from $24 to $16), and buyers pay part of that.

If the question is only about the **buyers' burden** specifically, based on this information, the answer should still be about their $2 increase in price, but it seems that the correct answer might involve interpreting both sides of the wedge.

Please confirm if you want to break down the full graph! Would you like more details?

### Here are five related questions for further exploration:
1. How is the total tax burden shared between buyers and sellers?
2. How do taxes affect the equilibrium price and quantity?
3. Why is there a difference in the burden of tax between buyers and sellers?
4. How is deadweight loss calculated from this graph?
5. What factors determine how much of the tax burden falls on buyers?

#### Tip:
The division of tax burden depends on the elasticity of supply and demand—the more inelastic side bears more of the tax.

Refer to the figure. What is the per-unit burden of the tax on buyers?

Explore how to determine the per-unit burden of tax on buyers using supply and demand graphs. This problem covers key economic concepts such as taxation, market equilibrium, and the tax incidence theorem. Suitable for high school students in Grades 10-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation