Use the Following to Answer Question

question 265

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Hamburgers) Use Figure: The Market for Hamburgers.If the market is originally in equilibrium and the government imposes an excise tax of $0.80 per unit of the good sold,the government's revenue from the tax will be:

• A)$175.
• B)$240.
• C)$105.
• D)$90.

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Definitions:

Pre-tax Gain

Income generated before any taxes have been applied.

Investment Account

An account held at a financial institution that is used for holding and trading investments such as stocks, bonds, and mutual funds.

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted based on changes in the investee's equity.

After-tax Gain

The profit remaining after all taxes have been deducted.