-Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and St represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented on this graph by

Question

Quizplus · Accepted Answer

The government's tax revenue is represented by the rectangle BAEC. This rectangle is formed by the difference in price paid by consumers (AB) and the price received by producers (EC) after the tax is imposed, over the quantity of goods sold (BC). This area accurately captures the total tax revenue collected by the government.

-Using the Above Figure, If the Government Levies a New