**Excise Tax Impact on T-Shirt Market**A financially struggling town decides to impose a $6 excise tax on each T-shirt sold. The following table details the quantity demanded and the quantity supplied at various price points:| Price per T-shirt | Quantity Demanded | Quantity Supplied ||-------------------|-------------------|-------------------|| $19 | 0 | 60 || 16 | 10 | 50 || 13 | 20 | 40 || 10 | 30 | 30 || 7 | 40 | 20 || 4 | 50 | 10 |**Question:**c. How much tax revenue does the town generate from the tax?### Graph/Diagram ExplanationThis table shows the relationship between price levels and market quantities for T-shirts before the excise tax. As the price decreases, the quantity demanded increases, while the quantity supplied decreases. The equilibrium price is where quantity demanded equals quantity supplied.The task is to determine the tax revenue generated, which is based on how the tax affects the equilibrium price and quantity.

In given table Price per t-shirt quantity demand quantity supplied $19 0 60 16 10 50 13…

A cash-starved town decides to impose a $6 excise tax on T-shirts sold. The following table shows the quantity demanded and the quantity supplied at various prices. Price per T- shirt $19 16 13 10 7 4 Quantity demanded 1.1 O 10 20 30 40 50 Quantity supplied 60 50 40 30 20 10 . How much tax revenue does the town generate from the tax?

A cash-starved town decides to impose a $6 excise tax on T-shirts sold. The following table shows the quantity demanded and the quantity supplied at various prices. Price per T- shirt $19 16 13 10 7 4 Quantity demanded 1.1 O 10 20 30 40 50 Quantity supplied 60 50 40 30 20 10 . How much tax revenue does the town generate from the tax?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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