Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

For a market in one good, the quantity supplied (QS) and the quantity demanded (QD) are QS = P – 30 and QD = 240 – 2P, where P = price in dollars. After a tax change on the good, QS becomes P – 36. What effect will this change have on equilibrium price?

  • AIt will fall by $2.
  • BIt will fall by $6.
  • CIt will rise by $2.
  • DIt will rise by $6.

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