Use the Following to Answer Question

question 140

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Lattes) Use Figure: The Market for Lattes.If the government assesses a tax of $0.75 on each latte,the price the consumer pays for a latte after the tax will:

• A)increase from $2 to $2.75.
• B)increase from $2 to $2.50.
• C)increase from $2 to $2.25.
• D)change,but we cannot determine by how much.

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