-The Above Figure Shows Supply and Demand Curves for Milk

question 35

Multiple Choice

-The above figure shows supply and demand curves for milk.If the government passes a $2 per gallon specific tax,the tax revenue is

• A) $2 ∗ Q₁.
• B) $2 ∗ Q₂.
• C) $2 ∗ (Q₂ - Q₁).
• D) $2.

---

Definitions:

Fair Value

The proceeds from divesting an asset or the expense for reallocating a liability in a conventional transaction between market stakeholders at the calculation date.

Investment Account

An account held at a financial institution that is used to buy and hold various investment securities, such as stocks and bonds.

Corporate Existence

The state of being recognized as a separate entity with legal rights and obligations, typically achieved through incorporation.

Fair Value

The financial gain from trading away an asset or the investment needed to dissolve a liability in a negotiated agreement amongst market stakeholders at the time of valuation.