Refer to the information provided in Figure 17.1 below to answer the questions that follow. Figure 17.1
-Refer to Figure 17.1. The tax rate that will ________ is associated with Point B.
A) minimize tax revenue
B) maximize tax revenue
C) maximize unemployment
D) minimize inflation

Question

Refer to the information provided in Figure 17.1 below to answer the questions that follow.  Figure 17.1
-Refer to Figure 17.1. The tax rate that will ________ is associated with Point B.
A) minimize tax revenue 
B) maximize tax revenue 
C) maximize unemployment 
D) minimize inflation

Quizplus · Accepted Answer

Point B represents the point where tax revenue is maximized. Any change in the tax rate above or below this point will result in a decrease in tax revenue. Therefore, the best choice is B.

Refer to the Information Provided in Figure 17