A unit tax of $10 has been levied on a good. The equilibrium price of the good will most likely

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When a unit tax is imposed on a good, the supply curve shifts vertically upwards by the amount of the tax, leading to a new equilibrium with a higher price and a lower quantity traded. However, the increase in price will not necessarily be equal to the amount of the tax, as it depends on the relative elasticities of supply and demand. If demand is relatively elastic, consumers will be more sensitive to changes in price and the price increase will be relatively small. Therefore, the equilibrium price is likely to increase by an amount less than $10, which is the amount of the tax.

A Unit Tax of $10 Has Been Levied on a Good