Question

The government taxes a manufacturer $1.00 per disposable camera. The manufacturer raises the wholesale prices an additional $2.00 per camera. The retailer raises the retailer price an additional $2.00 per camera. How much more, in dollars, does a consumer pay per camera

Answer 1

Answer:

A consumer pays $5 more per camera.

Step-by-step explanation:

Let the cost of manufacture of disposable camera in dollars be $=x$

Government taxes imposed on camera = $1.00 per camera

Cost of camera after taxes in dollars $=x+1$

Wholesale prices raised by manufacturer = $2.00 per camera

Wholesale price of camera in dollars per camera $=x+1+2=x+3$

Retail prices raised raised by retailer = $2.00 per camera

Retail price of camera in dollars per camera $=x+3+2=x+5$

Difference in prices of manufacture and retail price per camera in dollars

⇒ $x+5-x$

⇒ $5$

Thus, a consumer pays $5 more per camera.