Use the following to answer question:
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.If a $1 per unit tax is imposed on this good,the new supply curve will be:

Question

Use the following to answer question: 
-(Scenario: The Market for Good X)Use Scenario: The Market for Good X.If a $1 per unit tax is imposed on this good,the new supply curve will be:

Quizplus · Accepted Answer

A $1 per unit tax shifts the supply curve vertically upwards by $1. If the original supply curve equation is not provided, the correct answer involves adding $1 to the price (P) side of the equation, making A) P = 0.33Q + 1 the correct choice.

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