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After a $3 Per-Unit Tax on Watching Movies in Theaters

Question 243

Multiple Choice

After a $3 per-unit tax on watching movies in theaters is imposed, attendance falls from 4,000 a week to 3,000 a week. The revenue from the tax is


A) less than $9,000 a week.
B) $9,000 a week.
C) between $9,000 a week and $12,000 a week.
D) some amount that cannot be calculated without more information.

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