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(Figure: Tax on Supply and Demand) According to the Figure,if

Question 29

Multiple Choice

(Figure: Tax on Supply and Demand) According to the figure,if the tax is placed on buyers, the equilibrium is at Point: A) B, and the equilibrium price and quantity are P<sub>3</sub> and Q<sub>2</sub>. B) C, and the equilibrium price and quantity are P<sub>3</sub> and Q<sub>2</sub>. C) C, and the equilibrium price and quantity are P<sub>1</sub> and Q<sub>2</sub>. D) D, and the equilibrium price and quantity are P<sub>2</sub> and Q<sub>1</sub>. (Figure: Tax on Supply and Demand) According to the figure,if the tax is placed on buyers, the equilibrium is at Point:


A) B, and the equilibrium price and quantity are P3 and Q2.
B) C, and the equilibrium price and quantity are P3 and Q2.
C) C, and the equilibrium price and quantity are P1 and Q2.
D) D, and the equilibrium price and quantity are P2 and Q1.

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