Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The government revenue raised by the tax is:
A. $944,444.
B. $2.67 million.
C. $1.83 million.
D. $4.50 million.
B. $2.67 million.
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Over the last several years and until recently, the United States has had lower unemployment rates than most European countries
a. True b. False Indicate whether the statement is true or false
Due to the impact of increasing returns to scale, smaller firms can produce at a lower average total cost than larger firms
a. True b. False Indicate whether the statement is true or false
The answer is: 1/(1 - MPC). What is the question?
A) What is the marginal propensity to save? B) What is the efficiency wage model? C) What does consumption equal if the economy is in equilibrium? D) What is the multiplier? E) What does disposable income equal if the economy is in equilibrium?
Jack is a prospective buyer of a commodity that Jill is offering to sell. Social surplus in this scenario can be maximized:
A) when only Jack is optimizing. B) when only Jill is optimizing. C) when both Jack and Jill are optimizing. D) when neither Jack nor Jill is optimizing.