Suppose the government imposes a $10 per unit tax on a good (see diagram below) causing buyers to pay $18 for the item compared with an original equilibrium price of $12. What is the tax revenue the government collects from the sale of this item? Price 24 22 20 A 18 Supply 16 14- 12 10- H 6. 4 K M Demand 2. 369 12 15 18 21 24 27 30 33 36 39 Quantity $100 $80 O $120 O$60 +++
Suppose the government imposes a $10 per unit tax on a good (see diagram below) causing buyers to pay $18 for the item compared with an original equilibrium price of $12. What is the tax revenue the government collects from the sale of this item? Price 24 22 20 A 18 Supply 16 14- 12 10- H 6. 4 K M Demand 2. 369 12 15 18 21 24 27 30 33 36 39 Quantity $100 $80 O $120 O$60 +++
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Suppose the government imposes a $10 per unit tax on a good (see diagram below)
causing buyers to pay $18 for the item compared with an original equilibrium price
of $12. What is the tax revenue the government collects from the sale of this item?
Price
24
22
20
18
Supply
16-
14-
12
10
H
6+
4
K
M
Demand
2+
3 6 9 12 15 18 21 24 27 30 33 36 39
Quantity
$100
$80
$120
$60
MacBook Air
吕口
F9
F10
F3
F4
F5
F6
F7
F8
%
&
4
7
8
9.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae145de2-bdb1-45a8-8430-59c89d970c68%2F281e2aaf-8a25-4c6d-a9cb-2129ffae1326%2Fsno6q7o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose the government imposes a $10 per unit tax on a good (see diagram below)
causing buyers to pay $18 for the item compared with an original equilibrium price
of $12. What is the tax revenue the government collects from the sale of this item?
Price
24
22
20
18
Supply
16-
14-
12
10
H
6+
4
K
M
Demand
2+
3 6 9 12 15 18 21 24 27 30 33 36 39
Quantity
$100
$80
$120
$60
MacBook Air
吕口
F9
F10
F3
F4
F5
F6
F7
F8
%
&
4
7
8
9.
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