Suppose a Tax of $3 Per Unit Is Imposed on a Good.The

question 164

Multiple Choice

Suppose a tax of $3 per unit is imposed on a good.The supply curve and the demand curve are straight lines.The tax decreases consumer surplus by $3,900 and it decreases producer surplus by $3,000.The tax generates tax revenue of $6,000.From this information it follows that the tax decreased the equilibrium quantity of the good

• A)from 2,000 to 1,500.
• B)from 2,400 to 2,000.
• C)from 2,600 to 2,000.
• D)from 3,000 to 2,400.

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A form of close, personal interaction that involves sexual activity or expressions of romantic desire.

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A feeling of happiness, enjoyment, or satisfaction derived from an experience that is pleasing to the senses or mind.