Use the following to answer questions:
Figure: The Market for Blue Jeans
-(Figure: The Market for Blue Jeans) Look at the figure The Market for Blue Jeans. The government recently levied a $10 tax on the producers of blue jeans. What area or areas in the graph identify tax revenue?

Question

Use the following to answer questions:
Figure: The Market for Blue Jeans 
-(Figure: The Market for Blue Jeans) Look at the figure The Market for Blue Jeans. The government recently levied a $10 tax on the producers of blue jeans. What area or areas in the graph identify tax revenue?

Quizplus · Accepted Answer

The tax revenue is represented by the area between the supply and demand curves over the quantity sold, which is area b + d.

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