Refer to the graph shown. Initially, the market is in equilibrium with price equal to $25 and quantity equal to 100. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to:

A. raise the price consumers pay from $25 to $30.
B. lower the price sellers keep after paying the tax from $25 to $20.
C. lower the price consumers pay from $25 to $15.
D. raise the price sellers keep after paying the tax from $25 to $30.


Answer: B

Economics

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