Use the figure below to answer the following questions. Figure 6.3.3
-Refer to Figure 6.3.3.Suppose a tax of $1 is imposed.In which market would tax revenue be the lowest?
A)(a)
B)(b)
C)(c)
D)(d)
E)all markets equally

Question

Use the figure below to answer the following questions.  Figure 6.3.3
-Refer to Figure 6.3.3.Suppose a tax of $1 is imposed.In which market would tax revenue be the lowest?
A)(a) 
B)(b) 
C)(c) 
D)(d) 
E)all markets equally

Quizplus · Accepted Answer

Tax revenue is lowest in market (c) because it likely has the smallest quantity of goods sold, resulting in less tax collected.

Use the Figure Below to Answer the Following Questions