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    Economics Study Set 10
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    Exam 19: Elasticity
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    Exhibit 19-2 ​
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Exhibit 19-2 ​

Question 35

Question 35

Multiple Choice

Exhibit 19-2
​
Exhibit 19-2 ​    -Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a tax on the producers of good X, taxing them on each unit of good X they sell. As a result, the supply curve A) shifts (down and)  rightward from S<sub>2</sub> to S<sub>1</sub>. B) shifts (up and)  leftward from S<sub>1</sub> to S<sub>2</sub>. C) does not shift from S<sub>1</sub>. D) There is not enough information to answer the question.
-Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a tax on the producers of good X, taxing them on each unit of good X they sell. As a result, the supply curve


A) shifts (down and) rightward from S2 to S1.
B) shifts (up and) leftward from S1 to S2.
C) does not shift from S1.
D) There is not enough information to answer the question.

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