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. The amount of the tax is ________ per pumpkin.
A) $1.25
B) $1.75
C) $3.00
D) $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. The amount of the tax is ________ per pumpkin.
A) $1.25 
B) $1.75 
C) $3.00 
D) $7.25

Quizplus · Accepted Answer

The correct answer is $3.00 per pumpkin, as indicated by the difference between the price buyers pay and the price sellers receive after the tax is imposed.

Refer to the Information Provided in Figure 5