The figure shows the market for tires. According to the figure, the government collects per month in total tax revenue O A. $2,000 million B. $1,200 million C. $600 million O D. $900 million O E. None of the above answers is correct.
The figure shows the market for tires. According to the figure, the government collects per month in total tax revenue O A. $2,000 million B. $1,200 million C. $600 million O D. $900 million O E. None of the above answers is correct.
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.11P
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Step 1 TAX REVENUE
We can calculate the amount of revenue earned by the government by taxes with the following formula:
Tax Revenue = Tax per unit * Quantity of goods at the new equilibrium
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