Use the following to answer questions:
Figure: Imposition of a Tax
-(Figure: Imposition of a Tax) Refer to the figure. After the imposition of a $4 tax, the government collects revenues of:
A) $75.
B) $100.
C) $210.
D) $50.

Question

Use the following to answer questions:
Figure: Imposition of a Tax 
-(Figure: Imposition of a Tax) Refer to the figure. After the imposition of a $4 tax, the government collects revenues of:
A) $75. 
B) $100. 
C) $210. 
D) $50.

Quizplus · Accepted Answer

The government revenue from a tax is calculated by multiplying the tax amount by the quantity sold after the tax is imposed. In this case, the tax is $4, and the quantity sold is 25 units (as inferred from the figure), so the revenue is $4 * 25 = $100.

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