Price (dollars per textbook) 90 80 70 60 50 2 3 4 5 6. Quantity (millions of textbooks per year) 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 to $80 a textbook. B) is $70 a textbook. C) increases by $20.

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter4: Demand And Demand: Applications And Extensions
Section: Chapter Questions
Problem 5CQ
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100%
Price (dollars per textbook)
90
80 -
70
60
50
4 5
Quantity (millions of textbooks per year)
2
3
6
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 to $80 a textbook.
B) is $70 a textbook.
C) increases by $20.
D) decreases to $60 a textbook.
Transcribed Image Text:Price (dollars per textbook) 90 80 - 70 60 50 4 5 Quantity (millions of textbooks per year) 2 3 6 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 to $80 a textbook. B) is $70 a textbook. C) increases by $20. D) decreases to $60 a textbook.
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