(Figure: Impact of Tax on Market Equilibrium) Based on the graph, implementing a tax

A) lowers equilibrium price from $6 to $4 and lowers equilibrium quantity from 120 to 100 units.
B) lowers equilibrium price from $10 to $6 and lowers equilibrium quantity from 120 to 100 units.
C) raises equilibrium price from $6 to $10 and lowers equilibrium quantity from 120 to 100 units.
D) raises equilibrium price from $6 to $10 and raises equilibrium quantity from 100 to 120 units.

Question

(Figure: Impact of Tax on Market Equilibrium) Based on the graph, implementing a tax

A) lowers equilibrium price from $6 to $4 and lowers equilibrium quantity from 120 to 100 units. 
B) lowers equilibrium price from $10 to $6 and lowers equilibrium quantity from 120 to 100 units. 
C) raises equilibrium price from $6 to $10 and lowers equilibrium quantity from 120 to 100 units. 
D) raises equilibrium price from $6 to $10 and raises equilibrium quantity from 100 to 120 units.

Quizplus · Accepted Answer

The Answer of (Figure: Impact of Tax on Market Equilibrium) Based on the graph, implementing a tax

A) lowers equilibrium price from $6 to $4 and lowers equilibrium quantity from 120 to 100 units. 
B) lowers equilibrium price from $10 to $6 and lowers equilibrium quantity from 120 to 100 units. 
C) raises equilibrium price from $6 to $10 and lowers equilibrium quantity from 120 to 100 units. 
D) raises equilibrium price from $6 to $10 and raises equilibrium quantity from 100 to 120 units.

(Figure: Impact of Tax on Market Equilibrium) Based on the Graph