-The above figure shows the market for gourmet ice cream.In effort to reduce obesity,government places a $2 tax per gallon on suppliers in this market,shifting the supply curve from S? to S?.The total tax revenue is equal to

Question

Quizplus · Accepted Answer

The tax revenue is equal to the tax per gallon multiplied by the number of gallons sold. The tax per gallon is $2, and the number of gallons sold is 200,000. Therefore, the total tax revenue is $2 x 200,000 = $400,000.

-The Above Figure Shows the Market for Gourmet Ice Cream