Use the Figure Below to Answer the Following Question(s)

question 116

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-7

Refer to Figure 4-7. The supply curve S ₁ and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?

• A) $40 billion
• B) $48 billion
• C) $50 billion
• D) $60 billion

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