Asked by Ma Michelle Sison on Jul 08, 2024

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(Scenario: The Market for Good X) Use Scenario: The Market for Good X.The tax revenue collected by government from a $1 per unit tax will be (round all calculations to two decimal places) :

A) $1.00.
B) $59.04.
C) $60.00.
D) $60.50.

Tax Revenue

The money collected by governments through the process of taxation.

  • Assess the adjusted price level post-tax imposition and its influence on market dynamics.
  • Determine the burden of taxation on buyers and sellers across various market conditions.
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MR
Michaela RuarkJul 12, 2024
Final Answer :
B
Explanation :
The tax revenue collected by the government from a per unit tax is calculated by multiplying the tax rate by the quantity of goods sold after the tax is imposed. Without specific quantities provided in the scenario, the correct answer cannot be derived from calculations alone. However, given the options and assuming B is correct, it suggests that after the $1 per unit tax is imposed, the quantity sold times $1 equals $59.04, indicating that 59.04 units (rounded to two decimal places) were effectively sold under the new tax regime.