(Figure: Tax on Supply and Demand) According to the figure,if the tax is placed on sellers, the equilibrium is at Point:

Question

Quizplus · Accepted Answer

When the tax is placed on sellers, the supply curve shifts upward by the amount of the tax (represented by the distance between points B and C). This results in a higher equilibrium price (P₃) and a lower equilibrium quantity (Q₂). Therefore, the equilibrium is at point B.

(Figure: Tax on Supply and Demand) According to the Figure,if