Refer to the information provided in Figure 5.7 below to answer the question(s) that follow. Figure 5.7
The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.
-Refer to Figure 5.7. After the tax, store owners are willing to sell ________ pumpkins at a price of ________ each.
A) 1,200; $5.50
B) 700; $7.25
C) 0; $8.50
D) 1,200; $7.25

Question

Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.  Figure 5.7
The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.
-Refer to Figure 5.7. After the tax, store owners are willing to sell ________ pumpkins at a price of ________ each.
A) 1,200; $5.50 
B) 700; $7.25 
C) 0; $8.50 
D) 1,200; $7.25

Quizplus · Accepted Answer

After the tax, the supply curve shifts, and at the new equilibrium, store owners are willing to sell 700 pumpkins at a price of $7.25 each.

Refer to the Information Provided in Figure 5