Use the Following to Answer Questions: Table: Unit Taxes -(Table: Unit Taxes) in the Accompanying Table, What Price Will

question 74

Multiple Choice

Use the following to answer questions: Table: Unit Taxes $$\begin{array} { l | c c } \hline &\text{ Price with no tax} & \begin{array} { c } \text { Price with \$4 per unit } \\\text { tax placed on sellers }\end{array} \\\hline \text { Price paid by buyers }& \$ 55 & ? \\ \text { Price received by sellers } & 55 & \$53.50 \\\hline\end{array}$$
-(Table: Unit Taxes) In the accompanying table, what price will the buyers pay with the $4 tax?

• A) $59
• B) $51
• C) $57.50
• D) $55

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market stability.

Tax

A compulsory financial charge or other levy imposed on an individual or a legal entity by a governmental organization.

Market

A venue for the exchange of goods, services, or information between buyers and sellers, which may be physical or virtual.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.