The Following Question Are Based on the Following Diagram

question 58

Multiple Choice

The following question are based on the following diagram:

-Suppose a sales tax on the commodity is imposed where S and D are the market supply and demand curves before the tax was levied.The equilibrium price with the tax is

• A) $6.
• B) $6.40.
• C) $7.
• D) $7.40.
• E) somewhere between $6.40 and $7.

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Definitions:

Y-intercept

The point where a line crosses the y-axis of a graph, represented by the value of y when x equals zero.

Delivery Van

A type of vehicle designed specifically for transporting products or goods efficiently.

Linear Equation

An algebraic equation in which each term is either a constant or the product of a constant and (the first power of) a single variable.

Depreciated Value

The reduced worth of an asset over time, typically due to wear and tear or obsolescence.