Figure 8-6 -Refer to Figure 8-6.Suppose a 20th Unit of the Good

question 8

Multiple Choice

Figure 8-6

-Refer to Figure 8-6.Suppose a 20th unit of the good were sold by a seller to a buyer.Which of the following statements is correct?

• A)On the 20th unit, the difference between the buyer's value and the seller's cost is less than the tax per unit.
• B)On the 20th unit, the difference between the buyer's value and the seller's cost is greater than the tax per unit.
• C)On the 20th unit, the difference between the buyer's value and the seller's cost is equal to the tax per unit.
• D)It makes sense for the buyer to buy, and for the seller to sell, the 20th unit with or without the tax in place.

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