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

question 162

Multiple Choice

Suppose a tax of $3 per unit is imposed on a good.The supply curve is a typical upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.The tax decreases consumer surplus by $3,900 and decreases producer surplus by $3,000.The tax generates tax revenue of $6,000.The tax decreased the equilibrium quantity of the good from

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

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