Use the figure below to answer the following question(s) . Figure 4-8
Refer to Figure 4-8. The supply curve S₁ 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 S₁ to S₂. 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 S₁ 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 S₁ to S₂. Imposing the tax increases the equilibrium price of soft coal from

Quizplus · Accepted Answer

When the supply curve shifts from S₁ to S₂ due to the $40-per-ton tax on soft coal being levied, the new equilibrium price is determined by the intersection of the new supply curve and the original demand curve D. This occurs at a price of $60 per ton, as shown in the graph. Therefore, the correct answer is C) $50 to $60 per ton.

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