Suppose that sellers require $6.70 per unit to sell 800 units. If a $2 tax per unit is placed on sellers, the sellers will require _______ per unit to sell 800 units, causing the supply curve ________.
A) $8.70; to shift up by $2.00
B) $8.70; to shift down by $2.00
C) $4.70; to shift up by $2.00
D) $4.70; to shift down by $2.00

Question

Quizplus · Accepted Answer

The sellers will require $8.70 per unit to cover the $6.70 they originally required plus the $2 tax, causing the supply curve to shift up by $2.00.

Suppose That Sellers Require $6