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

A consumer pays $5 more per camera.

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.