-In the Figure Above, If a Tax of $2 Per

question 328

Multiple Choice

-In the figure above, if a tax of $2 per widget is imposed on sellers, then the price of widgets paid by the buyer will be

• A) more than or equal to $8.
• B) between $8 and $6.
• C) $6.
• D) less than $6.

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Definitions:

Supply Shifts

Movements of the supply curve to the left or right, indicating a change in the quantity supplied at a given price, caused by factors other than the price of the good itself.

Equilibrium Point

The market condition where demand for a product equals its supply, resulting in a stable price and quantity.

Soft Pretzels

A type of baked pastry made from dough that is commonly twisted into a knot shape and has a soft, chewy texture.

Price Floor

A minimum price below which exchange is not permitted.