Final answer:
The per-unit burden of the tax on sellers is $2.
The correct answer is c. $2.
Step-by-step explanation:
The correct answer is c. $2.
When a $5 per-unit tax is placed on the good, the burden of the tax on sellers can be calculated by determining the difference between the price paid by the buyer and the price received by the seller.
In this case, the price paid by the buyer increases by $5 per unit, from $25 to $30. However, the price received by the seller only decreases by $3 per unit, from $25 to $22.
Therefore, the per-unit burden of the tax on sellers is $3, making option b incorrect. Option a is also incorrect as it states $1, which is not the correct amount of the burden. The correct answer is c. $2.
The correct answer is c. $2.