The above below represents the perfectly competitive market for pumpkins both before and after the imposition of a tax on suppliers,which is represented by the shift of the supply curve from Supply 1 to Supply 2.Price ($)8.507.255.50B700a.$7.25b. $8.50A1,200Supply 2Supply 1DemandQuantity ofpumpkinsBased on the figure above, what will be the sticker price after the tax is imposed?Note: Since the tax is paid by suppliers, it has to be included in the sticker price paid by the consumer.C. $5.50d. None of the other options are correct

Please find the answer below. IMPOSITION OF TAX: Taxation is the imposition of compulsory levies…

The above below represents the perfectly competitive market for pumpkins both before and after the imposition of a tax on suppliers, which is represented by the shift of the supply curve from Supply 1 to Supply 2. Price ($) 8.50 7.25 5.50 0 B 700 1,200 Supply 2 Supply 1 Demand Quantity of pumpkins Based on the figure above, what will be the sticker price after the tax is imposed? Note: Since the tax is paid by suppliers, it has to be included in the sticker price paid by the consumer. a. $7.25 O b. $8.50 O c. $5.50 Od. None of the other options are correct

The above below represents the perfectly competitive market for pumpkins both before and after the imposition of a tax on suppliers, which is represented by the shift of the supply curve from Supply 1 to Supply 2. Price ($) 8.50 7.25 5.50 0 B 700 1,200 Supply 2 Supply 1 Demand Quantity of pumpkins Based on the figure above, what will be the sticker price after the tax is imposed? Note: Since the tax is paid by suppliers, it has to be included in the sticker price paid by the consumer. a. $7.25 O b. $8.50 O c. $5.50 Od. None of the other options are correct

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 20P

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