Multiple Choice
Refer to Scenario 19.4 below to answer the question(s) that follow.
SCENARIO 19.4: Suppose demand for widgets is given by the equation P = 10 - 0.25Q. Originally, the price of the good is $5 per unit. When a tax of $1 per unit is imposed, the price of the good rises to $6 per unit.
-Refer to Scenario 19.4. What is the total burden of the tax?
A) $2
B) $18
C) $32
D) $50
Correct Answer:
Verified
Correct Answer:
Verified
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