Answer the question on the basis of the following demand and supply data for a competitive market: $\begin{array}{c}
\begin{array}{ccc}
\text { Quantity Demanded } & \text { Price } \
\hline
1,500 & \$ 10 \
2,000 & 9 \
2,500 & 8 \
3,000 & 7 \
3,500 & 6\
\end{array}
\begin{array}{c}
\text{Quantity Supplied}\
\hline
3,500 \
3,000 \
2,500 \
2,000 \
1,500
\end{array}
\end{array}$ Refer to the given data.If government levies a per-unit excise tax of $1 on suppliers of this product,equilibrium price and quantity will be:

Question

Answer the question on the basis of the following demand and supply data for a competitive market: $\begin{array}{c}
\begin{array}{ccc}
\text { Quantity Demanded } &  \text { Price } \
\hline
1,500 & \$ 10 \
2,000 & 9 \
2,500 & 8 \
3,000 &  7 \
3,500 &  6\
\end{array}
\begin{array}{c}
\text{Quantity Supplied}\
\hline
3,500 \
3,000 \
2,500 \
2,000 \
1,500
\end{array}
\end{array}$ Refer to the given data.If government levies a per-unit excise tax of $1 on suppliers of this product,equilibrium price and quantity will be:

Quizplus · Accepted Answer

When the per-unit excise tax of $1 is levied on suppliers of the product, the supply curve shifts upward by $1 at each quantity, as shown in the graph below:

![image.png](attachment:image.png)

With the new supply curve, the equilibrium point is at a price of $8.50 and a quantity of 2,250. This can be seen by finding the point where the new supply curve intersects the original demand curve. Therefore, the answer is choice C.

Answer the Question on the Basis of the Following Demand