Use the Following to Answer Question

question 190

Multiple Choice

Use the following to answer question:
-(Figure: The Gasoline Market) Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline supplied by producers,shifting the supply curve upward.The total tax revenue collected by the government is equal to:

• A)$1.50.
• B)$15,000.
• C)$26,250.
• D)$30,000.

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Definitions:

Positive Profits

Earnings that exceed the total costs, indicating a financially beneficial outcome.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market, leading to market stability.

Units Of Output

A quantifiable count of the products or goods produced by a company or an industry.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, decreasing as more is produced.