The figure shows the market for tires. According to the figure, the governmentcollectsper month in total tax revenuePrice (dollars per tire)emO A. $2,000 millionS+ tax70OB. $1,200 million60O C. $600 million50D. $900 million40O E. None of the above answers is correct.30e As20t Ass1010 20 30 40 50 60 70Quantity (millions of tires per month)AR1O Time Remaining: 00:58:33NextompletedThis course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9eMacBook Pro

The figure shows the market for tires. According to the figure, the government collects per month in total tax revenue O A. $2,000 million B. $1,200 million C. $600 million O D. $900 million O E. None of the above answers is correct.

The figure shows the market for tires. According to the figure, the government collects per month in total tax revenue O A. $2,000 million B. $1,200 million C. $600 million O D. $900 million O E. None of the above answers is correct.

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

The figure shows the market for tires. According to the figure, the government
collects
per month in total tax revenue
Price (dollars per tire)
em
O A. $2,000 million
S+ tax
70
OB. $1,200 million
60
O C. $600 million
50
D. $900 million
40
O E. None of the above answers is correct.
30
e As
20
t Ass
10
10 20 30 40 50 60 70
Quantity (millions of tires per month)
AR
1
O Time Remaining: 00:58:33
Next
ompleted
This course (ECON202 s2022 online) is based on Bade/Parkin: Foundations of Microeconomics, 9e
MacBook Pro

Expert Solution

Step 1 TAX REVENUE

We can calculate the amount of revenue earned by the government by taxes with the following formula:

Tax Revenue = Tax per unit * Quantity of goods at the new equilibrium

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