Figure 6-11. On the graph below, the shift of the supply curve from S₁ to S₂ represents the imposition of a tax on a good. On the axes, Q represents the quantity of the good and P represents the price.
-Consider Figure 6-11.As a result of the tax,
A) the price paid by buyers rises from $5 to $7.
B) the price received by sellers (after paying the tax) falls from $5 to $3.
C) the government collects $30 in tax revenue.
D) All of the above are correct.
Correct Answer:
Verified
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Figure 6-11. On the graph below, the
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