Question

con dental insurance ✓ turbotax Electicity C ity of Enid National Guard Job... school page ) Youtube Northern Oklahoma College My Institution My Courses aining Time: 28 minutes, 59 seconds. stion Completion Status: STTON 8 Exhibit 20-2 (dollars) Refer to Exhibit 20-2. The market for good X is initially in equilibrium at $5. The government then places a tax on the producers of good X, ta of good X they sell. As a result, the supply curve a. shifts (down and) rightward from S2 to S. b. shifts (up and) leftward from Sto S2. c.does not shift from $1. d. There is not enough information to answer the question ESTION 9 Price rises from $9.99 to $10.99 and quantity demanded does not change for good X. It follows that the entire demand curve for good X is Click Save and Submit to save and submi. Click Save All Answers to see all answer MacBook Air o 8

Answer 1

The initial equilibrium price is $5.

Equilibrium is attained at the intersection of demand and supply curves.

The price of $5 is corresponding to the intersection of supply curve, S1, and demand curve, D1.

So, the initial supply curve is S1.

Now, government has imposed a tax on producers.

When tax is imposed on producers then supply curve shifts to the left.

So,

In the given case, the supply curve will shift leftwardr from S1 to S2.

Hence, the correct answer is the option (b).