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

question 37

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-9
-Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. How much revenue would the $.40 gasoline tax raise?

• A) $18 million
• B) $36 million
• C) $72 million
• D) $100 million

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded.

Complements

Complements are goods or services that are used together, where the use or consumption of one increases the demand for the other, such as coffee and sugar.

Substitutes

Products or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increased demand for the other.