The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1. The total tax revenue is equal to
A) $400,000.
B) $800,000.
C) $500,000.
D) $200,000.
E) More information is needed to determine the total tax revenue.
A
You might also like to view...
The more that firms in an economy believe that the demand for their goods is mainly influenced by the aggregate level of demand and not "local conditions," the ________ is the SAS curve and thus the ________ are cycles in real GDP
A) steeper, larger B) steeper, smaller C) flatter, larger D) flatter, smaller
How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?
Homeowners
A. are subject to double taxation. B. benefit from several loopholes. C. have no particular advantages in the tax system. D. must pay tax on the “income” of living in a house.
When loans are repaid at commercial banks
A. the assets of commercial banks increase. B. money is destroyed. C. money is created. D. the net worth of commercial banks increases.