7. The graph to the right depicts a market in which an excise tax has been placed on some good. The amount of the tax paid, or borne, per unit, by producers is equal to:
The amount of tax borne per unit by producers is the difference between the pre-tax market price, 50, and the after-tax producers' price (the actual revenue per-unit left after producers pay the tax) or 40. Thus, in this market producers bear a burden of $10 per unit due to this tax.
