Asked by
Deion Stewart
on Dec 05, 2024
Verified
(Figure: The Shrimp Market) Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 500 pounds,it can impose a _____ excise tax on sellers,and the total tax revenue generated will be _____.
A) $5;$2,500
B) $7.50;$7,500
C) $10;$2,500
D) The answer cannot be determined from the information provided.
Excise Tax
A duty imposed on specific products or activities by the government, typically with the aim of discouraging their use or raising revenue.
Shrimp Market
A sector of the economy related to the buying, selling, and distribution of shrimp, both wild-caught and farmed.
Total Tax Revenue
The total amount of money collected by a government from taxes.
- Comprehend the ways in which governmental policies, like excise taxes, affect market results and efficacy.
- Ascertain the linkage between tax rates and tax revenue within the ambit of elasticity.
Verified Answer
DH
Learning Objectives
- Comprehend the ways in which governmental policies, like excise taxes, affect market results and efficacy.
- Ascertain the linkage between tax rates and tax revenue within the ambit of elasticity.