-Refer to the graph above to answer this question.If a per unit tax equal to the external costs was imposed on the sellers of this product,what would be the equilibrium price?
A)0a.
B)0b.
C)0c.
D)0d.

Question

-Refer to the graph above to answer this question.If a per unit tax equal to the external costs was imposed on the sellers of this product,what would be the equilibrium price?
A)0a. 
B)0b. 
C)0c. 
D)0d.

Quizplus · Accepted Answer

Imposing a per unit tax equal to the external costs on the sellers shifts the supply curve to the left, reflecting the higher costs of production. This results in a new equilibrium where the supply curve (including external costs) intersects the demand curve, which is represented by point 0c on the graph.

-Refer to the Graph Above to Answer This Question