Use the following to answer questions:
Figure: Tax on Buyers 2
-(Figure: Tax on Buyers 2) In the diagram, the buyers pay _____ without the tax and pay _____ with the tax.
A) $6.50; $7.00
B) $6.50; $10.00
C) $7.00; $8.50
D) $7.00; $6.50

Question

Use the following to answer questions:
Figure: Tax on Buyers 2 
-(Figure: Tax on Buyers 2) In the diagram, the buyers pay _____ without the tax and pay _____ with the tax.
A) $6.50; $7.00 
B) $6.50; $10.00 
C) $7.00; $8.50 
D) $7.00; $6.50

Quizplus · Accepted Answer

From the diagram, we can see that the original price without tax (labelled as "Price without tax") is $7.00. After the tax is imposed, the buyers pay an additional $1.50 (labelled as "Tax") for a total of $8.50 (labelled as "Price with tax"). Therefore, the correct choice is C.

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