(Figure: The Market for Hamburgers) Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:

A) $175.
B) $240.
C) $105.
D) $90.

Question

Taylor Faulkner · Accepted Answer

Final Answer : B, Explanation :  The government's revenue from an excise tax is calculated by multiplying the tax per unit by the quantity of goods sold after the tax is imposed. Assuming the tax leads to a decrease in the quantity sold (as is typical due to the increase in price to consumers and decrease in revenue to producers), the area representing the government's revenue is the tax ($0.80) multiplied by the new quantity sold. Without the specific numbers from the figure, the correct answer is determined by understanding this concept.

(Figure: The Market for Hamburgers) Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:

A) $175.
B) $240.
C) $105.
D) $90.

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Learning Objectives

Related questions

(Figure: The Market for Hamburgers) Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:A) $175.B) $240.C) $105.D) $90.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: The Market for Hamburgers) Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:

A) $175.
B) $240.
C) $105.
D) $90.