Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.

-Refer to Figure 8-7.Suppose a 22nd unit of the good were sold by a seller to a buyer.Which of the following statements is correct?

A) For the 22nd unit, the difference between the buyer's value and the seller's cost is less than the tax per unit.
B) For the 22nd unit, the difference between the buyer's value and the seller's cost is greater than the tax per unit.
C) For the 22nd 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 22nd unit, with or without the tax in place.