Exhibit 19-6 ​ Refer to Exhibit 19-6. Suppose the Three Equilibrium Quantities Are

question 88

Multiple Choice

Exhibit 19-6 ​

Refer to Exhibit 19-6. Suppose the three equilibrium quantities are 700, 800, and 900, and the two other equilibrium prices are $2.20 and $2.75. What is the change in total revenue when a per-unit tax shifts S₁ to S₂, given that D₂ is the relevant demand curve?

• A)$260
• B)-$260
• C)$900
• D)$700
• E)-$200

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