Refer to the Graph Shown

question 178

Multiple Choice

Refer to the graph shown. Initially, the market is in equilibrium with price equal to $3 and quantity equal to 100. Government imposes a tax on suppliers of $1 per unit. The effect of the tax is to:

• A)raise the price consumers pay from $3 to $4.
• B)lower the price consumers pay from $3 to $2.
• C)raise the price sellers keep after paying the tax.
• D)lower the price sellers keep after paying the tax.

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Definitions:

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Smallest Term

The term in a mathematical expression or equation that has the lowest degree, or in a sequence or series, the term with the least value.

Express

To convey a thought or feeling in words or by gestures and conduct.

Buying Power

The amount of money or credit a person or company has available to purchase stocks, bonds, or other securities.