Exhibit 20-2 -Refer to Exhibit 20-2.The Market for Good X Is Initially

Multiple Choice

Exhibit 20-2

-Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X,as shown by the shift of S₁to S₂.As a result,the equilibrium price

A) rises from $5.00 to $6.25.
B) falls from $5.00 to $4.00.
C) remains constant at $5.00.
D) none of the above