Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, equilibrium quantity will change to:
A. 500.
B. 300.
C. 1,000.
D. 400.
Answer: D
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a. True b. False Indicate whether the statement is true or false