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-(Figure: The Market for Hamburgers)Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:

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Use the following to answer question: 
-(Figure: The Market for Hamburgers)Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:

Quizplus · Accepted Answer

The government's revenue from an excise tax is calculated by multiplying the tax per unit by the quantity of goods sold after the tax is imposed. Assuming the tax leads to a decrease in the quantity sold (as is typical due to the increase in price to consumers and decrease in revenue to producers), the area representing the government's revenue is the tax ($0.80) multiplied by the new quantity sold. Without the specific numbers from the figure, the correct answer is determined by understanding this concept.

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