The graph shown demonstrates a tax on sellers. Before the tax was imposed, the buyers purchased _______ units and paid _______ for each one.

Question

Quizplus · Accepted Answer

The graph shows a tax on sellers, which means that the supply curve shifts upwards by the amount of the tax. The new equilibrium quantity is lower and the new equilibrium price is higher. 
Before the tax was imposed, the demand curve intersects the supply curve at a quantity of 31 and a price of $9. This means that buyers purchased 31 units and paid $9 for each one. Therefore, the correct answer is (C) 31 units and $9 for each one.

The Graph Shown Demonstrates a Tax on Sellers