42 Supply and Demand Analysis: an Oil Import Fee

question 64

Multiple Choice

4.2 Supply and Demand Analysis: An Oil Import Fee
Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4
-Refer to Figure 4.4. Assume that initially there is free trade. If the United States then imposes a $25 tax per barrel of imported oil, the tax revenue generated will equal

• A) $25 million per day.
• B) $50 million per day.
• C) $100 million per day.
• D) $125 million per day.

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