The Diagram Below Shows Supply and Demand Diagrams (S and D)for

question 52

Multiple Choice

The diagram below shows supply and demand diagrams (S and D) for some product.The government then imposes an excise tax.The new supply curve is . FIGURE 18-4
-Refer to Figure 18-4.What is the producers' net revenue after the imposition of the tax?

• A)$450
• B)$500
• C)$540
• D)$600
• E)$630

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Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services provided on credit.

Operating Activities

Cash flows related to the main or core business activities of an entity, such as sales of goods and services.

Notes Payable

A financial obligation or written promissory note requiring the borrower to pay back the lender the principal amount plus any interest by a specified date.

Interest

The charge for borrowing money, calculated as a percentage of the principal amount.