Reference: Ref 6-3 (Figure: Tax Imposed on Sellers) According to the figure, the equilibrium price and quantity before the $1 tax is imposed are:

Question

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Before the $1 tax is imposed, the equilibrium price and quantity are $4 and 1,000 respectively. This is where the demand and supply curves intersect. After the tax is imposed, the new equilibrium quantity will decrease and the new equilibrium price will increase.

Reference: Ref 6-3 (Figure: Tax Imposed on Sellers) According to the Figure