-The Graph Shows the Market for Textbooks

question 55

Multiple Choice

-The graph shows the market for textbooks.If the government introduces a tax of $20 a textbook,then the price paid by buyers ________.

• A) increases by $20
• B) increases to $80 a textbook
• C) decreases to $60 a textbook
• D) is $70 a textbook
• E) does not change because the demand for textbooks is perfectly elastic