Use the Following to Answer Questions

question 85

Multiple Choice

Use the following to answer questions:
Figure: Tax on Sellers
-(Figure: Tax on Sellers) Suppose the imposition of a per-unit tax on sellers shifts the supply curve from S₀ to S₁. Using the figure, calculate the amount of the tax.

• A) $1
• B) $2
• C) $3
• D) $4

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Definitions:

Artisan

A skilled craftsperson who makes or creates things by hand that may be functional or strictly decorative.

Lien

A legal right or claim against a property, typically used as security for a debt or charge that must be paid off when the property is sold.

Innkeeper

An innkeeper is a person or the owner of an establishment that offers lodging, and sometimes meals and entertainment, to travelers.

Repairs

The process of fixing or restoring something that is damaged, broken, or worn out to bring it back to its original condition.