(Table: Market for Fried Cheesecake) Use Table: Market for Fried Cheesecake. The government decides to tax fried cheesecake at a rate of $0.30 per cheesecake and collect the tax from producers. As a result of the $0.30 tax per fried cheesecake, the government will receive total tax revenue of:
A)$500.
B)$1,000.
C)$1,500.
D)The total is impossible to calculate.

Question

(Table: Market for Fried Cheesecake) Use Table: Market for Fried Cheesecake. The government decides to tax fried cheesecake at a rate of $0.30 per cheesecake and collect the tax from producers. As a result of the $0.30 tax per fried cheesecake, the government will receive total tax revenue of: 
A)$500. 
B)$1,000. 
C)$1,500. 
D)The total is impossible to calculate.

Quizplus · Accepted Answer

To calculate the total tax revenue, we need to multiply the tax rate ($0.30) by the total quantity produced (5,000). 
$0.30 x 5,000 = $1,500. Therefore, the government will receive a total tax revenue of $1,500.