Price (dollars per gallon of ice cream)The figure shows the market for gourmet ice cream. In effort toreduce obesity, government places a $2 tax per gallon on suppliersin this market, shifting the supply curve from S, to S,. The total tax20revenue is equal to18A. $500,000.16B. $200,000.14C. $800,000.12D. $400,000.E. More information is needed to determine the total tax10revenue.50100 150 200 250300350Quantity (thousands of gallons of ice cream)

Tax on sellers increases the cost of production that discourages producers to produce. This leads to…

The figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S, to S,. The total tax Price (dollars per gallon of ice cream) 20 revenue is equal to 18 A. $500,000. 16 B. $200,000. 14 C. $800,000. 12 D. $400,000. O E. More information is needed to determine the total tax 10 +. D revenue. 50 100 150 200 250 300 350 Quantity (thousands of gallons of ice cream)

The figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S, to S,. The total tax Price (dollars per gallon of ice cream) 20 revenue is equal to 18 A. $500,000. 16 B. $200,000. 14 C. $800,000. 12 D. $400,000. O E. More information is needed to determine the total tax 10 +. D revenue. 50 100 150 200 250 300 350 Quantity (thousands of gallons of ice cream)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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