The Graph Shows the Supply Curve for a Product Before

question 246

Multiple Choice

The graph shows the supply curve for a product before tax ( S ₀ ) and after an excise tax is imposed ( S ₁) . If 500 units of the product are sold after the tax is imposed, the amount of tax revenue going to the government is

• A)$125.
• B)$250.
• C)$375.
• D)$500.

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Definitions:

Legal Systems

The comprehensive set of laws and regulations, including the institutions and processes through which they are enforced and interpreted, governing a specific territory or country.

Banking Systems

Systems comprising institutions and protocols that enable financial transactions, savings, and investments across individuals and businesses.

Quota

A fixed, limited amount or number of something, such as goods or people.

Imported Merchandise

Goods or products that are brought into one country from another, subject to regulations and taxes by the importing country.