Use the following to answer questions:
Figure: The Market for Lattes
-(Figure: The Market for Lattes) If an excise tax of $2.25 is assessed on each latte, government revenue will be:

Question

Use the following to answer questions:
Figure: The Market for Lattes 
-(Figure: The Market for Lattes) If an excise tax of $2.25 is assessed on each latte, government revenue will be:

Quizplus · Accepted Answer

The government revenue from an excise tax is calculated by multiplying the tax per unit by the quantity sold. If the tax is $2.25 and the quantity sold is 200 lattes, the revenue is $2.25 * 200 = $450.

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