Use the following to answer question:
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify tax revenue?

Question

Use the following to answer question: 
-(Figure: The Market for Blue Jeans)Use Figure: The Market for Blue Jeans.The government recently levied a $10 tax on the producers of blue jeans.What area or areas in the graph identify tax revenue?

Quizplus · Accepted Answer

Tax revenue is represented by the area that shows the amount of tax multiplied by the quantity of goods sold after the tax is implemented. This is typically the rectangle formed between the supply and demand curves after a tax is introduced, which corresponds to areas b + d in a standard supply and demand graph scenario.

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