Refer to the information provided in Figure 5.7 below to answer the question(s) that follow.
Figure 5.7The above figure represents the market for pumpkins both before and after the imposition of an excise tax, which is represented by the shift of the supply curve.Refer to Figure 5.7. Had the demand for pumpkins been perfectly inelastic at Point A, the amount customers would have paid per pumpkin after the imposition of this tax would have been
A. $0.
B. $5.50.
C. $7.25.
D. $8.50.
Answer: D
Economics
You might also like to view...
In common value auctions
a. Bidders do not know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item differs across bidders
Economics
The production function shows the volume of output that can be produced from given inputs.
Answer the following statement true (T) or false (F)
Economics