Refer to Figure 4-22. The equilibrium price in the market before the tax is imposed is

A) $1.00.
B) $3.50.
C) $5.00.
D) $6.00.

Equilibrium Price

The price at which the supply of an item matches its demand, resulting in market stability.

Market

A venue or mechanism through which buyers and sellers interact to trade goods, services, or financial instruments.

Tax

A compulsory financial charge or levy imposed by a government on individuals or entities to fund public expenditures.