Question: Figure 8-3 The vertical distance between points A and C represents a tax in the market. A graph of price, P, versus quantity, Q, shows

Figure 8-3 The vertical distance between points A and C represents a tax in the market. A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from the origin, and a demand curve, descending linearly from point P subscript 4. The following points lie on Price, from top to bottom. P subscript 4, P subscript 3, P subscript 2, and P subscript 1. P subscript 2 is the equilibrium price. The curves intersect at (Q subscript 2, P subscript 2), where point B lies. Point A lies on the demand curve at (Q subscript 1, P subscript 3). Point C lies on the supply curve at (Q subscript 1, P subscript 1). Point D lies between Point A and Point C at (Q subscript 1, P subscript 2). Refer to Figure 8-3. The equilibrium price before the tax is imposed is Group of answer choices P1. P2. P3. P4

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