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Exhibit 19-2 ​

question 165

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Exhibit 19-2

Exhibit 19-2 ​    -Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X as shown by the shift of S<sub>1</sub> to S<sub>2</sub>. What is an expression for the tax revenue raised? A) $2.25 x Q<sub>2</sub> B) $1.25 x Q<sub>2</sub> C) $1.00 x Q<sub>2</sub> D) ($1.00 x Q<sub>2</sub>)  + [$1.25 x (Q<sub>1</sub> - Q<sub>2</sub>) ] E) $2.25 x (Q<sub>1</sub> - Q<sub>2</sub>)
-Refer to Exhibit 19-2. The market for good X is initially in equilibrium at $5. The government then places a per-unit tax on good X as shown by the shift of S1 to S2. What is an expression for the tax revenue raised?


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