For a good that is taxed,the area on the relevant supply-and-demand graph that represents government's tax revenue is a
A)triangle.
B)rectangle.
C)trapezoid.
D)None of the above is correct;government's tax revenue is the area between the supply and demand curves,above the horizontal axis,and below the effective price to buyers.

Question

Quizplus · Accepted Answer

The government's tax revenue is represented by a rectangle on the supply-and-demand graph, as it is calculated by multiplying the tax per unit by the quantity sold.

For a Good That Is Taxed,the Area on the Relevant