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.