Figure: The Market for Lattes
(Figure: The Market for Lattes) Look at the 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:
A.decrease from $2 to $1.75.
B.decrease from $2 to $1.50.
C.decrease from $2 to $1.25.
D.change, but we cannot determine by how much.

Question

Figure: The Market for Lattes
  (Figure: The Market for Lattes) Look at the 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: 
A.decrease from $2 to $1.75.
B.decrease from $2 to $1.50.
C.decrease from $2 to $1.25.
D.change, but we cannot determine by how much.

Quizplus · Accepted Answer

The Answer of Figure: The Market for Lattes
  (Figure: The Market for Lattes) Look at the 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: 
A.decrease from $2 to $1.75.
B.decrease from $2 to $1.50.
C.decrease from $2 to $1.25.
D.change, but we cannot determine by how much.

Figure: the Market for Lattes