Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The effect of the tax is to raise equilibrium price from: ?

A. P1 to P1 + t.
B. P2 − t to P1 + t.
C. P2 − t to P2.
D. P1 to P2.

answer:

D. P1 to P2.