The diagram illustrates the demand and supply curves for tractors. The current equilibrium is at X. What could the new equilibrium be if the government introduced a tax on the country’s tractor manufacturers?
- Apoint A
- Bpoint B
- Cpoint C
- Dpoint D
Economics 9708 · AS & A Level · Maximum and minimum prices
The diagram illustrates the demand and supply curves for tractors. The current equilibrium is at X. What could the new equilibrium be if the government introduced a tax on the country’s tractor manufacturers?