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Suppose that your town decides to impose a tax on 2-liter bottles of soda to encourage healthier dietary habits. Before the tax, the supply and

Suppose that your town decides to impose a tax on 2-liter bottles of soda to encourage healthier dietary habits. Before the tax, the supply and demand schedules for bottles of soda are given in the table below. The town imposes a tax of $0.75 per bottle. Will the equilibrium price after the tax be higher or lower than the price without the tax? Price Per Bottle Quantity Supplied Per Month Quantity Demanded Per Month $0.50 12,000 18,000 $0.75 13,000 17,500 $1.00 14,000 17,000 $1.25 15,000 16,500 $1.50 16,000 16,000 $1.75 17,000 15,500 $2.00 18,000 15,000 $2.25 19,000 14,500 $2.50 20,000 14,000 Group of answer choices the equilibrium price will not change. lower higher

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