Use the table below to answer the following questions.
Table 6.3.1
-Refer to Table 6.3.1.Suppose a sales tax of $2 a unit is imposed on the good described in the table.The new price paid by consumers is $ ________ and ________ units are sold.
A)$6;400
B)$7;700
C)$7;500
D)$6.50;500
E)$6.50;700

Question

Use the table below to answer the following questions.
Table 6.3.1 
-Refer to Table 6.3.1.Suppose a sales tax of $2 a unit is imposed on the good described in the table.The new price paid by consumers is $ ________ and ________ units are sold.
A)$6;400 
B)$7;700 
C)$7;500 
D)$6.50;500 
E)$6.50;700

Quizplus · Accepted Answer

The imposition of a $2 sales tax shifts the supply curve upward by $2. This typically results in a higher price for consumers and a lower quantity sold. Given the options, the one that reflects a plausible outcome of such a tax (without seeing the actual table) would be an increase in price to cover the tax and a decrease in quantity sold due to the higher price. Option C suggests the price paid by consumers increases to $7 (reflecting the tax) and the quantity sold decreases to 500 units, which aligns with the expected impact of a sales tax.

Use the Table Below to Answer the Following Questions