Exhibit 5-31 -Refer to Exhibit 5-31. The revenue generated by the tax is: A) P₃DCP₁ B) P₂BDP₃ C) Q₂CAQ₁ D) b and c E) P₂BCP₁

Question

Quizplus · Accepted Answer

The revenue generated by the tax is equal to the area of the rectangle formed by P₂ and the area of the triangle formed by P₃ and P₂. The area of the rectangle is P₂BD = 12 x 800 = PS9,600. The area of the triangle is 1/2 x 800 x (13-12) = PS400. Therefore, the total revenue generated by the tax is PS9,600 + PS400 = PS10,000.

Exhibit 5-31 -Refer to Exhibit 5-31. the Revenue Generated by the Tax