The tax burden can be determined by calculating the difference between the price consumers pay after the tax is imposed and the price they paid before the tax. In this case, consumers pay $5 per unit after the tax is imposed, compared to the equilibrium price of $4 per unit before the tax. Therefore, the tax burden per unit is $5 - $4 = $1.
To find the total revenue burden, we multiply the tax burden per unit by the quantity of units. In this case, the equilibrium quantity after the tax is 8 units. Thus, the total revenue burden is $1 * 8 = $8.
Without any taxes, suppose the equilibrium price is $4 and the equilibrium quantity is 10
units. The government then imposes a $2 per unit tax on the consumers. The resulting
equilibrium price is $5 and the equilibrium quantity is 8 units. What is the value of the revenue burden?
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