Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, the equilibrium price will change to:
A) $4.
B) $8.
C) $12.
D) $14.

Question

Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, the equilibrium price will change to: 
A) $4. 
B) $8. 
C) $12. 
D) $14.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, the equilibrium price will change to: 
A) $4. 
B) $8. 
C) $12. 
D) $14.

Refer to the Graph Shown