42 Supply and Demand Analysis: an Oil Import Fee

question 52

Multiple Choice

4.2 Supply and Demand Analysis: An Oil Import Fee
Refer to the information provided in Figure 4.4 below to answer the questions that follow. Figure 4.4
-Refer to Figure 4.4. Assume that initially there is free trade. Tax revenue of $50 million per day will be generated if the United States imposes a ________ tax per barrel on imported oil.

• A) $25
• B) $50
• C) $100
• D) $150