Use the following to answer question:
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If the government assesses a tax of $0.75 on sellers of lattes,the price producers will receive for a latte after the tax will:

Question

Use the following to answer question: 
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If the government assesses a tax of $0.75 on sellers of lattes,the price producers will receive for a latte after the tax will:

Quizplus · Accepted Answer

When a tax is imposed on sellers, the price they receive decreases by the amount of the tax. If the initial price is $2 and the tax is $0.75, the price producers receive will decrease by $0.75, resulting in a new price of $1.50.

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