Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: The Market for Lattes
-(Figure: The Market for Lattes) Look at the figure The Market for Lattes. If the government assesses a tax of $0.75 on each latte, the price the consumer pays for a latte after the tax will:

A) increase from $2 to $2.75.
B) increase from $2 to $2.50.
C) increase from $2 to $2.25.
D) change, but we cannot determine by how much.