Refer to the Information Provided in Figure 5

question 80

Multiple Choice

Refer to the information provided in Figure 5.7 below to answer the question(s) that follow. Figure 5.7
The 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. The amount by which the store owners will raise the price of pumpkins after the imposition of the tax is ________ per pumpkin.

• A) $1.25
• B) $1.75
• C) $3.00
• D) $7.25