-In the figure above,suppose that the government imposes a tax of $4 per pizza.Then,the tax revenue collected by the government equals
A) $240.
B) $320.
C) $160.
D) $120.
E) $4.

Question

-In the figure above,suppose that the government imposes a tax of $4 per pizza.Then,the tax revenue collected by the government equals
A) $240. 
B) $320. 
C) $160. 
D) $120. 
E) $4.

Quizplus · Accepted Answer

The tax revenue collected by the government is calculated by multiplying the tax per unit by the quantity sold. If the tax is $4 per pizza and the quantity sold is 60 pizzas (as inferred from the revenue of $240), then the tax revenue is $4 * 60 = $240.

-In the Figure Above,suppose That the Government Imposes a Tax