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(Advanced Analysis)The Equations for the Demand and Supply Curves for a Particular

Question 10

Multiple Choice

(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4 Q and P = 2 + 0.4 Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equation is P = 3 + 0.4 Q. Government's revenue from this tax is


A) $875.
B) $750.
C) $1,500.
D) $1,500

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