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-The Above Figure Shows the Market for Gourmet Ice Cream

Question 19

Multiple Choice

  -The above figure shows the market for gourmet ice cream. In an effort to reduce obesity, the government places a $2 tax per litre on suppliers in this market, shifting the supply curve from S0 to S1. The quantity of ice cream consumed before the tax is ________ litres and the quantity consumed after the tax is ________ litres. A)  200,000; 300,000 B)  300,000; 200,000 C)  250,000; 200,000 D)  200,000; 250,000 E)  200,000; 200,000
-The above figure shows the market for gourmet ice cream. In an effort to reduce obesity, the government places a $2 tax per litre on suppliers in this market, shifting the supply curve from S0 to S1. The quantity of ice cream consumed before the tax is ________ litres and the quantity consumed after the tax is ________ litres.


A) 200,000; 300,000
B) 300,000; 200,000
C) 250,000; 200,000
D) 200,000; 250,000
E) 200,000; 200,000

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