ap econ question

Question

An excise tax drives a wedge between the supply price and the demand price with a height equal to:

a) the demand price of the good.

b) the pre-tax price of the good.

c) the total tax revenue collected with the tax.

d) the amount of the tax per unit of the good.

e) the deadweight loss caused by the tax.

Answer 1

A tax will create a gap equal to the amount of the tax per unit of the good...answer D