The following graph illustrates a market where the government has implemented a tax resulting in the new supply
curve (STax ). Answer the following questions about the new equilibrium with the tax.
Market
12
11
10
9
8
7
STax
s
6
Price
4
3
2
1
0
D
45
50
55
60
0 5 10 15 20 25 30 35 40
Quantity
Instructions: Enter your answers as a whole number.
a) What are the new equilibrium price and quantity?
Price =
Quantity =