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Suppose a tax on buyers has been imposed in the graph shown. Once the tax is in place, the buyers purchase ____ units and pay ____ for each one.

   

Multiple Choice
6; $22
9; $30
9; $18
6; $34

To determine the correct answer, let's analyze the given graph:

1. **Understanding the Graph**:
   - The graph shows the demand and supply curves, with $ D_1 $ being the initial demand curve and $ D_2 $ representing the demand curve after the tax is imposed.
   - $ S $ is the supply curve.
   - $ E_1 $ is the initial equilibrium before the tax, where demand curve $ D_1 $ intersects the supply curve $ S $.
   - $ E_2 $ is the new equilibrium after the tax, where demand curve $ D_2 $ intersects the supply curve $ S $.

2. **Equilibrium Points**:
   - At equilibrium $ E_1 $ (before the tax), the quantity demanded and supplied is 9 units at a price of $30.
   - At equilibrium $ E_2 $ (after the tax), the quantity demanded and supplied is 6 units at a price of $22.

3. **Interpretation**:
   - The tax shifts the demand curve from $ D_1 $ to $ D_2 $, resulting in a new equilibrium at point $ E_2 $.
   - After the tax is imposed, the buyers are purchasing 6 units and the price they pay per unit is $34 (indicated by the price level above equilibrium $ E_2 $ which represents the buyers' total expenditure, including the tax).

Given this analysis, the correct answer is:

**6; $34**

Would you like further details or have any questions? Here are some related questions to consider:

1. How does a tax on buyers affect the demand curve?
2. What is the difference between a tax on buyers and a tax on sellers in terms of market impact?
3. How does the imposition of a tax create a difference between the price buyers pay and the price sellers receive?
4. What is deadweight loss, and how can it be identified in such a graph?
5. How does the elasticity of demand and supply influence the burden of the tax?
6. What happens to consumer and producer surplus after a tax is imposed?
7. How can government revenue from the tax be represented on this graph?
8. How would a subsidy to buyers or sellers be represented in a similar graph?

**Tip:** When analyzing taxes in a supply and demand graph, always identify the new equilibrium and observe the prices paid by buyers and received by sellers to understand the tax impact.

Understand how a tax on buyers affects the supply and demand equilibrium using graphical analysis. Learn about tax incidence, equilibrium shifts, and price impacts in economics.

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