-Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and S_t represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented on this graph by

Question

-Using the above figure, if the government levies a new unit tax in this market, S represents the original supply curve, and S<sub>t</sub> represents the after-tax supply curve, then the revenues that the government collects from imposing this tax is represented on this graph by A) OAEG. B) OBCG. C) BAEC. D) CEF.

Quizplus · Accepted Answer

The government tax revenue is represented by the area between the original supply curve (S) and the after-tax supply curve (S_t) over the quantity sold, which is the rectangle BAEC. This area represents the tax per unit multiplied by the quantity sold.

-Using the Above Figure, If the Government Levies a New