Multiple Choice
Exhibit 20-2
![Exhibit 20-2 -Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X as shown by the shift of S<sub>1</sub> to S<sub>2</sub>.What is an expression for the tax revenue raised? A) $2.25 x Q<sub>2</sub> B) $1.25 x Q<sub>2</sub> C) $1.00 x Q<sub>2</sub> D) ($1.00 x Q<sub>2</sub>) + [$1.25 x (Q<sub>1</sub> - Q<sub>2</sub>) ] E) $2.25 x (Q<sub>1 </sub>- Q<sub>2</sub>)](https://d2lvgg3v3hfg70.cloudfront.net/TB2061/11ea21bf_3632_a46a_8bc0_6983a8d92a4c_TB2061_00_TB2061_00_TB2061_00_TB2061_00_TB2061_00_TB2061_00_TB2061_00.jpg)
-Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X as shown by the shift of S1 to S2.What is an expression for the tax revenue raised?
A) $2.25 x Q2
B) $1.25 x Q2
C) $1.00 x Q2
D) ($1.00 x Q2) + [$1.25 x (Q1 - Q2) ]
E) $2.25 x (Q1 - Q2)
Correct Answer:
Verified
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