Use the following to answer question:
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 500 pounds,it can impose a _____ excise tax on sellers,and the total tax revenue generated will be _____.

Question

Use the following to answer question: 
-(Figure: The Shrimp Market)Use Figure: The Shrimp Market.If the government wants to limit shrimp sales to 500 pounds,it can impose a _____ excise tax on sellers,and the total tax revenue generated will be _____.

Quizplus · Accepted Answer

To limit shrimp sales to 500 pounds, a $5 excise tax is needed, as it aligns with the price difference at that quantity. The total tax revenue is $5 multiplied by 500 pounds, equaling $2,500.

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