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-The Above Figure Shows the Market for Gourmet Ice Cream

Question 14

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 total tax revenue is equal to A) $800,000. B) $500,000. C) $200,000. D) $400,000. E) More information is needed to determine the total tax revenue.
-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 total tax revenue is equal to


A) $800,000.
B) $500,000.
C) $200,000.
D) $400,000.
E) More information is needed to determine the total tax revenue.

Correct Answer:

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