Asked by Komal Klair on May 07, 2024
Verified
Refer to Figure 5.7. Before the tax, store owners are willing to sell ________ pumpkins at a price of ________ each.
A) 1,200; $5.50
B) 700; $7.25
C) 0; $8.50
D) 1,200; $8.50
Excise Tax
A per-unit tax on a specific good.
Supply Curve
A graph that represents the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.
- Analyze the effects of taxes on market outcomes, including the impact on prices and quantities in supply and demand curves.
- Interpret graphical representations of supply and demand curves, including shifts due to tax impositions.
Verified Answer
JS
jashan SandhuMay 12, 2024
Final Answer :
A
Explanation :
Before the tax, store owners are willing to sell 1,200 pumpkins at a price of $5.50 each, as indicated by the supply curve at that price point.
Learning Objectives
- Analyze the effects of taxes on market outcomes, including the impact on prices and quantities in supply and demand curves.
- Interpret graphical representations of supply and demand curves, including shifts due to tax impositions.