Suppose that a specific tax of $3 is imposed on producers of bread. The bread market supply is Qs = 10 +
0.5P and the bread market demand is Qd = 100 - P. What is the change in the equilibrium quantity of bread
induced by the tax incidence?
O A) Equilibrium quantity decreased by three units.
•B) Equilibrium quantity increased by two units.
O C) Equilibrium quantity decreased by one unit. O D) Equilibrium quantity increased by one unit.