The graph shown demonstrates a tax on sellers. Before the tax was imposed, the sellers produced ________ units and received __________ for each one sold.

Question

Quizplus · Accepted Answer

The graph shows a tax of $4 per unit is imposed on the sellers, which reduces the price received by them from $9 to $5. Hence, the equilibrium point shifts left from 31 (without tax) to 15 (with tax). So, the sellers produced 31 units and received $9 each before the tax was imposed, which is option B.

The Graph Shown Demonstrates a Tax on Sellers