The figure given below shows the demand and supply curves of automobiles. Figure 13.3 In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax
-In Figure 13.3,the amount of tax levied by the government is equal to:

Question

The figure given below shows the demand and supply curves of automobiles. Figure 13.3  In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax
-In Figure 13.3,the amount of tax levied by the government is equal to:

Quizplus · Accepted Answer

The amount of tax levied by the government is represented by the vertical distance between the supply curves, which is Q_tb - Q_td.

The Figure Given Below Shows the Demand and Supply Curves