Exhibit 19-2 ​

Multiple Choice

Exhibit 19-2
​

-Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X as shown by the shift of S₁ to S₂. What is an expression for the tax revenue raised?

A) $2.25 x Q₂
B) $1.25 x Q₂
C) $1.00 x Q₂
D) ($1.00 x Q₂) + [$1.25 x (Q₁ - Q₂) ]
E) $2.25 x (Q₁ - Q₂)