Figure 4-24 -Refer to Figure 4-24. The price that sellers receive after the tax is imposed is A) P₁. B) P₂. C) P₃. D) impossible to determine from the figure.

Question

Quizplus · Accepted Answer

The price that sellers receive after the tax is imposed is P1 because the supply curve shifts to the left, which means that the sellers are willing to sell less at each price. The equilibrium price then falls to P1.

Figure 4-24 -Refer to Figure 4-24. the Price That Sellers Receive After