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

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 correct choice based on typical equilibrium values provided in similar contexts.

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