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To Calculate the Revenue the Government Receives When a Tax

Question 13

Multiple Choice

To calculate the revenue the government receives when a tax is imposed on a good, multiply the


A) after-tax equilibrium price by the after-tax quantity.
B) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.
C) tax by the pre-tax quantity.
D) pre-tax equilibrium price by the pre-tax quantity.
E) tax by the after-tax quantity.

Correct Answer:

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