Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $6 and a quantity of 40 units. If the government imposes a $2 per-unit tax on this product, equilibrium quantity will change to:
A) 30.
B) 50.
C) 60.
D) 100.

Question

Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $6 and a quantity of 40 units. If the government imposes a $2 per-unit tax on this product, equilibrium quantity will change to: 
A) 30. 
B) 50. 
C) 60. 
D) 100.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $6 and a quantity of 40 units. If the government imposes a $2 per-unit tax on this product, equilibrium quantity will change to: 
A) 30. 
B) 50. 
C) 60. 
D) 100.

Refer to the Graph Shown