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Use the following graph for a competitive market to answer the question below. A line graph depicting the variation of price on vertical axis with
Use the following graph for a competitive market to answer the question below. A line graph depicting the variation of price on vertical axis with quantity on horizontal axis.A decreasing line labeled D intersects two increasing lines labeled S1 (to the right) and S2 (to the left) at points (400, 2.50) and (300, 3.50), respectively. A point lies at S1 where quantity equals 300 and price equals 1.25. Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from S1 to S2. The price the seller receives for the product after paying the tax is Multiple Choice $3.50. $1.25. $2.25. $2.50
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