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

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.