Suppose the demand for wine is elastic and that initially 5 million bottles of wine are produced and consumed in the United States. If the government imposes a tax of $2 per bottle of wine, the government will collect
A) more than $10 million in tax revenues.
B) $10 million in tax revenues.
C) less than $10 million in tax revenues.
D) an amount that may be more than, equal to, or less than $10 million in tax revenues depending on the precise elasticity of demand.
C
Economics
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To assist pineapple growers in Hawaii, the U.S. government decides to limit the number of pineapples allowed into the country that are grown in Central American countries
Such a restriction prevents many transactions from occurring, and results in opportunity loss which is called a(n) A) import deficit. B) deadweight loss of a quota. C) rent seeking loss. D) non-cooperative surplus.
Economics