Use the Following to Answer Questions

question 68

Multiple Choice

Use the following to answer questions:
Scenario: The Market for Good X:
The market for good X can be depicted with the following demand and supply equations:
Demand: P = 50 - 0.5Q
Supply: P = 0.33Q
where P is price per unit and Q represents quantity in units. Policy makers plan on imposing a $1 per unit tax on this good.
-(Scenario: The Market for Good X) Look at the scenario The Market for Good X. If a $1 per unit tax is imposed on this good, the new supply curve will be:

• A) P = 0.33Q + 1.
• B) P = 50 - 0.5Q
• C) P = 0.33Q - 1.
• D) P = 0.33Q + 1 + 50 - 0.5Q.