I can never seem to understand these styles of question, even with looking at the answer and mark scheme after, and they seem to always come up, could anyone explain it to me please?
Price (£), Quantity demanded (000s per month), Quantity supplied (000s per month)
10 10 40
9 15 35
8 20 30
7 25 25
6 30 20
5 35 15
4 40 10
If the government imposes a tax of £2 on this good, what will the new equilibrium price be?
A £6 B £7 C £8 D £9
the answer is C