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Refer to Scenario 19

Question 62

Multiple Choice

Refer to Scenario 19.3 below to answer the question(s) that follow.
SCENARIO 19.3: Suppose demand for widgets is given by the equation P = 20 - 0.5Q. Originally, the price of the good is $10 per unit. When a tax of $2 per unit is imposed, the price of the good rises to $12 per unit.
-Refer to Scenario 19.3. How much total tax revenue is raised by the tax?


A) $2
B) $20
C) $32
D) $40

Correct Answer:

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