Refer to the Information Provided in Figure 5

question 7

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. Had the demand for pumpkins been perfectly inelastic at Point A, the amount store owners would have received per pumpkin after the imposition and payment of this tax would have been

• A) $3.00.
• B) $5.50.
• C) $7.25.
• D) $8.50.

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Definitions:

Relative Increases

Comparisons of growth or expansion in different areas or items, measured in proportionate terms rather than absolute numbers.

Farm Employment

Jobs and labor directly involved in the agricultural sector, including farming, dairy, fisheries, and other activities related to the cultivation and harvesting of products.

Parity Ratio

The ratio of the price received by farmers from the sale of an agricultural commodity to the prices of other goods paid by them; usually expressed as a percentage; used as a rationale for price supports.

Prices Received

Refers to the prices that producers get for their products at the point of sale.