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 . FIGURE 18-4
-Refer to Figure 18-4.What is the producers' revenue before the imposition of the tax?
A)$450
B)$500
C)$540
D)$600
E)$630

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  .  FIGURE 18-4
-Refer to Figure 18-4.What is the producers' revenue before the imposition of the tax?
A)$450 
B)$500 
C)$540 
D)$600 
E)$630

Quizplus · Accepted Answer

The producers' revenue before the imposition of the tax is calculated by multiplying the equilibrium price by the equilibrium quantity. Without the figure, we assume the equilibrium price and quantity lead to a revenue of $600.

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