Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2,both measured in millions of gallons of ice cream per year.Suppose the government imposes a $0.50 tax on each gallon of ice cream.The government revenue raised by the tax is:
A) $944,444.
B) $2.67 million.
C) $1.83 million.
D) $4.50 million.
Correct Answer:
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Q8: Suppose the market demand function for ice
Q9: Suppose the market demand function for ice
Q10: More of a tax is borne by
Q11: Suppose the market demand function for ice
Q12: The incidence of a tax:
A) falls entirely
Q14: There is no deadweight loss from a
Q15: Suppose the market demand function for ice
Q16: A specific tax:
A) is a fixed dollar
Q17: Suppose the market demand function for ice
Q18: The federal gasoline tax is an example
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