Use the Figure Below to Answer the Following Question(s)

question 26

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-8
-Refer to Figure 4-8. The supply curve S₁ and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S₁ to S₂. Imposing the tax increases the equilibrium price of soft coal from

• A) $20 to $60 per ton.
• B) $20 to $50 per ton.
• C) $50 to $60 per ton.
• D) $50 to $90 per ton.