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Refer to the Graph Shown

Question 45

Multiple Choice

Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S0 to S1. The amount of revenue government will collect from this tax is equal to the: Refer to the graph shown. Assume the market is initially in equilibrium at point b in the graph but the imposition of a per-unit tax on this product shifts the supply curve up from S<sub>0</sub> to S<sub>1</sub>. The amount of revenue government will collect from this tax is equal to the:   A)  amount of the per-unit tax multiplied by Q<sub>1</sub>. B)  amount of the per-unit tax multiplied by Q<sub>2</sub>. C)  area of the triangle abc. D)  area of the triangle bcd.


A) amount of the per-unit tax multiplied by Q1.
B) amount of the per-unit tax multiplied by Q2.
C) area of the triangle abc.
D) area of the triangle bcd.

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