Refer to the Information Provided in Figure 5

question 174

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 the store owners will receive per pumpkin after paying the tax is

• A) $1.75.
• B) $3.00.
• C) $4.25.
• D) $7.25.

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Definitions:

Gross Sales

The total of all sales transactions before any deductions for returns, allowances, or discounts.

Sales Discounts

Reductions granted on the selling price of goods or services to encourage prompt payment by customers.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a refund or credit.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a deduction from the gross sales to arrive at the net sales figure.