Price (dollars per gallon) S2 $5.50 3.50 2.50 Quantity (millions of gallons per month) 30 40 45 Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply curve with the $2 tax in place. What price would consumers pay if the tax was placed on consumers instead of producers? O 1) $2.00 O 2) $3.50 O 3) $2.50 4) $1.50
Price (dollars per gallon) S2 $5.50 3.50 2.50 Quantity (millions of gallons per month) 30 40 45 Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply curve with the $2 tax in place. What price would consumers pay if the tax was placed on consumers instead of producers? O 1) $2.00 O 2) $3.50 O 3) $2.50 4) $1.50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Price
(dollars
per gallon)
S2
$5.50
3.50
2.50
D
Quantity
(millions of
gallons per month)
30
40 45
Assume the graph above illustrates a new tax put into the market for soft drinks. S2
is the supply curve with the $2 tax in place.
What price would consumers pay if the tax was placed on consumers instead of
producers?
1) $2.00
O 2) $3.50
3) $2.50
4) $1.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b9ef3af-1bb5-4398-94ba-7d8c1b3fd143%2Fecf58798-eb59-46da-9184-1ae40c4958a3%2Fjfs0991_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Price
(dollars
per gallon)
S2
$5.50
3.50
2.50
D
Quantity
(millions of
gallons per month)
30
40 45
Assume the graph above illustrates a new tax put into the market for soft drinks. S2
is the supply curve with the $2 tax in place.
What price would consumers pay if the tax was placed on consumers instead of
producers?
1) $2.00
O 2) $3.50
3) $2.50
4) $1.50
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