The Equations for the Demand and Supply Curves for a Particular

question 20

Multiple Choice

The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .4Q,where P is price and Q is quantity expressed in units of 100.After an excise tax is imposed on the product,the supply equation is P = 3 + .4Q.Government's revenue from this tax is:

• A) $750.
• B) $1500.
• C) $875.
• D) $800.

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