Question

suppose the graph above describes the supply and demand in a competitive market, with the vertical axis measuring the price in dollars and the horizontal axis measuring the number of units. 1. if the government imposes a unit tax of $6 in this market then the quantity traded would select 2. _to select 3. and the gover select in revenues.

Explanation:

Step1: Understand tax - market impact

Imposing a unit tax shifts the supply curve upwards by the amount of the tax. This reduces the quantity traded in a competitive market.

Step2: Analyze quantity change

When a tax is imposed, the cost of production effectively increases for suppliers. As a result, the quantity traded falls.

Step3: Determine government revenue

Government revenue from the tax is the unit - tax amount multiplied by the quantity traded after the tax. Since quantity traded falls but there is a positive tax per unit, the government will have some non - zero revenue.

Answer:

1. fall
2. a lower quantity
3. have a positive amount