Table 12-1

$$\begin{array} { | c | c | }
\hline \text { Person } & \begin{array} { c }
\text { Value of a White Water Rafting } \
\text { Trip } \
\text { (Dollars) }
\end{array} \
\hline \text { Ken } & 150 \
\hline \text { Alex } & 120 \
\hline \text { Brenda } & 90 \
\hline \text { Rob } & 60 \
\hline
\end{array}$$
-Refer to Table 12-1. Assume that the price of a weekend ski pass is $55 and that the price reflects the actual unit cost of the trip. Suppose the government imposes a tax of $12 on white water rafting, which raises the price to $67. How much tax revenue is collected from these four participants?
A)$200
B)$159
C)$36
D)$83

Question

Table 12-1
​
​
 $$\begin{array} { | c | c | } 
\hline \text { Person } & \begin{array} { c } 
\text { Value of a White Water Rafting } \
\text { Trip } \
\text { (Dollars) }
\end{array} \
\hline \text { Ken } & 150 \
\hline \text { Alex } & 120 \
\hline \text { Brenda } & 90 \
\hline \text { Rob } & 60 \
\hline
\end{array}$$
-Refer to Table 12-1. Assume that the price of a weekend ski pass is $55 and that the price reflects the actual unit cost of the trip. Suppose the government imposes a tax of $12 on white water rafting, which raises the price to $67. How much tax revenue is collected from these four participants?
A)$200
B)$159
C)$36
D)$83

Quizplus · Accepted Answer

The tax revenue collected is $12 for each participant who decides to go on the trip. Since the price with tax ($67) is less than the value of the trip for Ken, Alex, and Brenda, but not for Rob, only three participants will buy the trip. Therefore, the total tax revenue is $12 * 3 = $36.

Table 12-1 ​ ​ -Refer to Table 12-1

Table 12-1

-Refer to Table 12-1