Assume that a bottle of wine sells for $10. The government decides to put a $1 per bottle tax on wine. What will be the new price that consumers must pay for a bottle of wine?
$10 + $1 = $11
To find the new price that consumers must pay for a bottle of wine after the government tax, you need to add the amount of tax to the original price. In this case, the original price of the wine is $10, and the tax per bottle is $1.
To calculate the new price, you add the tax to the original price:
$10 (original price) + $1 (tax per bottle) = $11
Therefore, the new price that consumers must pay for a bottle of wine, including the $1 tax, is $11.