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Figure: The Shrimp Market
-(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the government wants to limit shrimp sales to 500 pounds, it can impose a _____ excise tax on sellers, and the total tax revenue generated will be _____.

Question

Use the following to answer questions:
Figure: The Shrimp Market 
-(Figure: The Shrimp Market) Look at the figure The Shrimp Market. If the government wants to limit shrimp sales to 500 pounds, it can impose a _____ excise tax on sellers, and the total tax revenue generated will be _____.

Quizplus · Accepted Answer

The correct answer is A because the excise tax of $5 per pound will limit shrimp sales to 500 pounds, and the total tax revenue generated will be $5 * 500 = $2,500.

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