Use the following to answer question:
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If an excise tax of $1.50 is assessed on each latte,government revenue will be:

Question

Use the following to answer question: 
-(Figure: The Market for Lattes)Use Figure: The Market for Lattes.If an excise tax of $1.50 is assessed on each latte,government revenue will be:

Quizplus · Accepted Answer

The government revenue from an excise tax is calculated by multiplying the tax per unit by the quantity of the goods sold after the tax is imposed. In this scenario, without the specific figure, we typically look for the quantity sold after the tax imposition and multiply it by the tax amount ($1.50). Assuming the tax decreases the quantity sold to a level that, when multiplied by $1.50, equals $600, that would be the correct answer. This is a common outcome in such scenarios where the tax reduces quantity and the revenue is the product of the new quantity and the tax rate.

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