Question

Suppose that the local government of Corpus Christi decides to institute a tax on seltzer consumers. Before the tax, 55,000 packs of seltzer were sold every year at a price of $9 per pack. After the tax, 49000 packs of seltzer are sold every year; consumers pay $12 per pack (including the tax), and producers receive $4 per pack.

The amount of the tax on a pack of a seltzer is $__________per pack

Answer 1

The tax per pack of seltzer is $8.

Step-by-step explanation:

The tax on a pack of seltzer can be calculated by finding the difference between the price paid by consumers and the amount received by producers. Before the tax, consumers paid $9 per pack and producers received $4 per pack. After the tax, consumers pay $12 per pack and producers still receive $4 per pack. Therefore, the tax per pack of seltzer is $12 - $4 = $8.