Use the figure below to answer the following question(s) .
Figure 4-8

Refer to Figure 4-8. The supply curve S ₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S ₁ to S ₂. Imposing the tax increases the equilibrium price of soft coal from

Question

Use the figure below to answer the following question(s) .
Figure 4-8

Refer to Figure 4-8. The supply curve S ₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S ₁ to S ₂. Imposing the tax increases the equilibrium price of soft coal from

Quizplus · Accepted Answer

The imposition of the tax shifts the supply curve to the left, resulting in a new equilibrium point with a higher price and lower quantity. The new equilibrium price is the intersection of the new supply curve S ₂ and the original demand curve D, which is $60 per ton. Therefore, the correct answer is C.

Use the Figure Below to Answer the Following Question(s)