-In the Figure Above, If a Tax of $2 Per

question 328

Multiple Choice

-In the figure above, if a tax of $2 per widget is imposed on sellers, then the price of widgets paid by the buyer will be

• A) more than or equal to $8.
• B) between $8 and $6.
• C) $6.
• D) less than $6.

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Definitions:

Selling Price

The price at which a product or service is sold to the purchaser, often determined by the cost of production, market demand, and competition.

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.

Mark-up

The extra sum included in the goods' selling price to cover both overhead expenses and profit.

Selling Price

The amount of money for which a product or service is sold to a customer.