The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax. The government imposes a $10 per unit tax on buyers of MP3 players.
-After the tax is imposed,the government collects tax revenue of ________ a week.
A) $20,000
B) $10,000
C) $50,000
D) $60,000
E) $40,000

Question

The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax. The government imposes a $10 per unit tax on buyers of MP3 players.
-After the tax is imposed,the government collects tax revenue of ________ a week.
A) $20,000 
B) $10,000 
C) $50,000 
D) $60,000 
E) $40,000

Quizplus · Accepted Answer

The tax is 10% of $200,000, which is $20,000.

The Figure Above Shows the Market for MP3 Players, Where