If a tax is $6 and the quantity sold (Q) is 1, what is the government revenue?

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Prepare for the ASU ECN212 Microeconomic Principles Exam 1. Study with multiple choice questions and detailed explanations. Ace your exam!

When determining government revenue from a tax, the revenue is calculated by multiplying the amount of the tax by the quantity of the good sold. In this case, the tax is $6 for each unit sold, and if the quantity sold is 1, you simply take the tax amount and multiply it by the quantity:

Revenue = Tax × Quantity Sold = $6 × 1 = $6.

Therefore, the government revenue from this tax is indeed $6. This concept illustrates how taxation affects revenue generation for the government based on the volume of sales and the tax rate applied to each unit sold. Other choices do not correctly calculate the revenue based on the given inputs.

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