-The graph shows the market for textbooks. If the government introduces a tax of $20 a textbook, then the price paid by buyers

Question

Quizplus · Accepted Answer

When a tax is introduced, it shifts the supply curve upwards by the amount of the tax. This typically results in a higher equilibrium price paid by buyers, assuming the demand curve remains unchanged. The specific increase to $80 depends on the original equilibrium price and how the tax affects the supply and demand balance.

-The Graph Shows the Market for Textbooks