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Question 11 Tries remaining: 1 Points out of 7.70 S Tax $40 Flag question $30 $20 - $10 10 20 30 40 Calculate the Tax Revenue that this per unit tax would generate. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer: Check

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Answer #1

Tax per unit is vertical distance between STax and S lines, equal to $(30 - 15) = $15.

After-tax equilibrium is at intersection of Demand and STax, with equilibrium quantity being 15 units.

Tax revenue = Tax per unit x After-tax quantity = $15 x 15 = $225

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