Price (per latte) $4.50 S 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 200 600 1,000 1,400 1,800 Quantity of lattes (in cups) If an excise tax of $2.25 is assessed on each latte, government revenue will be: O $1.800 O $225 O $450 O $400

Price (per latte) $4.50 S 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 200 600 1,000 1,400 1,800 Quantity of lattes (in cups) If an excise tax of $2.25 is assessed on each latte, government revenue will be: O $1.800 O $225 O $450 O $400

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Price
(per latte)
$4.50
S
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0 200
600
1,000
1,400
1,800
Quantity of lattes (in cups)
If an excise tax of $2.25 is assessed on each latte, government revenue will be:
O $1.800
O $225
O $450
O $400

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