3. Refer to Figure 2. Suppose the local government imposes a $2.50 per month tax on cable companies. What happens to the price charged by the cable company following the imposition of this tax?
(A) The price rises from \( P_{\mathrm{M}} \) to \( (P_{\mathrm{M}} + \$2.50) \).
(B) The price rises from \( P_{\mathrm{M}} \) but it increases by an amount less than $2.50.
(C) The price rises from \( P_{\mathrm{M}} \) but it increases by an amount greater than $2.50 to reflect the monopoly's markup.
(D) The price remains at \(P_{\mathrm{M}}\)