42 Supply and Demand Analysis: an Oil Import Fee

Multiple Choice

4.2 Supply and Demand Analysis: An Oil Import Fee
Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4
-Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil, the tax revenue generated will equal

A) $25 million per day.
B) $50 million per day.
C) $100 million per day.
D) $125 million per day.