Multiple Choice
Exhibit 19-2 ![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 S<sub>1</sub> to S<sub>2</sub>. What is an expression for the tax revenue raised? A) $2.25 x Q<sub>2</sub> B) $1.25 x Q<sub>2</sub> C) $1.00 x Q<sub>2</sub> D) ($1.00 x Q<sub>2</sub>) + [$1.25 x (Q<sub>1</sub> - Q<sub>2</sub>) ] E) $2.25 x (Q<sub>1</sub> - Q<sub>2</sub>)](https://d2lvgg3v3hfg70.cloudfront.net/TBX9059/11ebf02d_dc9c_a5d4_b31f_cb656f908b8c_TBX9059_00.jpg)
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)
Correct Answer:
Verified
Correct Answer:
Verified
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