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Use the Figure Below to Answer the Following Question(s)

Question 206

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Use the figure below to answer the following question(s) . Figure 4-8
Use the figure below to answer the following question(s) . Figure 4-8   Refer to Figure 4-8. The supply curve S<sub>1</sub> and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S<sub>1</sub> to S<sub>2</sub>. Imposing the tax increases the equilibrium price of soft coal from A)  $20 to $60 per ton. B)  $20 to $50 per ton. C)  $50 to $60 per ton. D)  $50 to $90 per ton. Refer to Figure 4-8. The supply curve S1 and the demand curve D indicate initial conditions in the market for soft coal. A $40-per-ton tax on soft coal is levied, shifting the supply curve from S1 to S2. Imposing the tax increases the equilibrium price of soft coal from


A) $20 to $60 per ton.
B) $20 to $50 per ton.
C) $50 to $60 per ton.
D) $50 to $90 per ton.

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