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Exhibit 19-6 ​

Question 24

Multiple Choice

Exhibit 19-6
​
Exhibit 19-6 ​ -Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two other equilibrium prices are $2.20 and $2.75. What is the change in total revenue when a per-unit tax shifts S<sub>1</sub> to S<sub>2</sub>, given that D<sub>2</sub> is the relevant demand curve? A) $260 B) -$260 C) $900 D) $700 E) -$200
-Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two other equilibrium prices are $2.20 and $2.75. What is the change in total revenue when a per-unit tax shifts S1 to S2, given that D2 is the relevant demand curve?


A) $260
B) -$260
C) $900
D) $700
E) -$200

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