Use the Following to Answer Questions

question 251

Multiple Choice

Use the following to answer questions:
Figure: The Gasoline Market
-(Figure: The Gasoline Market) Look at the 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:

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