Use the figure below to answer the following question(s). Figure 4-8
Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?
A) $600 million
B) $700 million
C) $2.4 billion
D) $2.8 billion

Question

Use the figure below to answer the following question(s). Figure 4-8
 Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?
A) $600 million 
B) $700 million 
C) $2.4 billion 
D) $2.8 billion

Quizplus · Accepted Answer

The area of the rectangle created by the $40-per-ton tax and the quantity of emissions is 60 million tons * $40/ton = $2.4 billion. Therefore, the $40-per-ton tax generates $2.4 billion in revenue for the government.

Use the Figure Below to Answer the Following Question(s)