Refer to Figure 4-24. The amount of the tax on each unit of the good is

A) P₃ − P₁.
B) P₃ − P₂.
C) P₂ − P₁.
D) Q₂ − Q₁.

Tax

A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Unit Good

A single item or instance of a product that is produced by a firm or available for sale in markets.