Multiple Choice

-In the above figure, the imposition of a $0.25 sales tax on sellers will
A) raise the equilibrium price paid by buyers of hotdogs by $0.125.
B) raise the equilibrium price paid by buyers of hotdogs by $0.25.
C) lower the equilibrium price paid by buyers of hotdogs by $0.25.
D) None of the above answers is correct.
Correct Answer:
Verified
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