Refer to Scenario 19.3 below to answer the question(s) that follow. SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.Refer to Scenario 19.3. How much total tax revenue is raised by the tax?
A. $2
B. $20
C. $32
D. $40
Answer: C
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Older people often reminisce about the “good old days” when prices were much lower. This is misplaced nostalgia primarily because in the “good old days,”
A. prices were not really that low. B. wages were much lower also. C. people worked longer hours. D. people had more leisure time.
The tax brackets in a particular year are 10% on earnings up to $35,000, 20% on earnings from $35,001 to $75,000, 30% on earnings from $75,001 to $150,000, and 33% on earnings over $150,000. If Professor Schmidt earns $125,000, what is her marginal tax rate?
a. 10% b. 27% c. 30% d. 60%
A rare coin dealer is likely to have a ________ price elasticity of supply than does a coffee shop due to ________.
A. more elastic; the availability of inputs B. more elastic; a longer adjustment time C. less elastic; the availability of inputs D. more elastic; a shorter adjustment time
The founding document of the European Economic Community, and the document that continues to provide the basis for the European Union is the
A) Treaty of Brussels. B) Treaty of Rome. C) Single European Treaty. D) Maastricht Treaty.