-Suppose a change takes place and the new equilibrium is at point A in the above figure. This change could have been caused by
A)an increase in the per-unit tax on CDs.
B)a decrease in the income of consumers.
C)a reduction in the wages paid to workers in the CD industry.
D)a reduction in the price of CD players.

Question

-Suppose a change takes place and the new equilibrium is at point A in the above figure. This change could have been caused by
A)an increase in the per-unit tax on CDs. 
B)a decrease in the income of consumers. 
C)a reduction in the wages paid to workers in the CD industry. 
D)a reduction in the price of CD players.

Quizplus · Accepted Answer

An increase in the per-unit tax on CDs would shift the supply curve to the left, leading to a new equilibrium at point A.

-Suppose a Change Takes Place and the New Equilibrium Is