Refer to the information provided in Figure 17.1 below to answer the questions that follow. Figure 17.1
-Refer to Figure 17.1. At Point ________, any change in tax rates will decrease tax revenue.
A) A
B) B
C) C
D) D

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. At Point ________, any change in tax rates will decrease tax revenue.
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

At point B, the tax revenue is maximized, and any change in tax rates will decrease the revenue. This is because a higher tax rate will discourage people from buying the good, leading to a decrease in total revenue, while a lower tax rate means that the government is collecting less revenue per unit sold. Therefore, point B represents the optimal tax rate for maximizing revenue.

Refer to the Information Provided in Figure 17