Refer to the Graph Shown

question 45

Multiple Choice

Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, equilibrium quantity will change to:

• A) 300.
• B) 400.
• C) 500.
• D) 1,000.