The diagram below shows supply and demand diagrams (S and D)for some product.The government then imposes an excise tax.The new supply curve is ST.
FIGURE 18- 4
-Refer to Figure 18- 4.What is the producers' revenue before the imposition of the tax?

Question

The diagram below shows supply and demand diagrams (S and D)for some product.The government then imposes an excise tax.The new supply curve is ST.
  FIGURE 18- 4
-Refer to Figure 18- 4.What is the producers' revenue before the imposition of the tax?

Quizplus · Accepted Answer

Before the imposition of the tax, the equilibrium price is $30 and the equilibrium quantity is 20. Therefore, the producers' revenue is:
$30 x 20 = $600.

The Diagram Below Shows Supply and Demand Diagrams (S and D)for