The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a tax on gasoline is imposed as shown in the figure, then the total tax revenue earned by the government equals
A) $24 million.
B) $16 million.
C) $8 million.
D) more than $24 million.
E) less than $8 million.
C
Economics
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Refer to the scenario above. Which country is likely to have lowest life expectancy at birth?
A) Eduland B) Techland C) Neoland D) Ritzland
Economics
Good A has a price elasticity of demand of .27, while good B has a price elasticity of demand of 2.9 . To raise the most tax revenue, the government should:
a. place a unit tax on good A. b. place a unit tax on good B. c. raise the price elasticity of demand for good A. d. subsidize the production of good B. e. cut its spending for various social programs.
Economics