If a tax is imposed on buyers of candy bars, shown in the figure as the movement fromD1toD2, what is the amount of tax received by the government?
Figure: Commodity Tax
If a tax is imposed on buyers of candy bars, shown in the figure as the movement fromD1toD2, what is the amount of tax received by the government?
$731.25
$37.50
$243.75
$300.00
To determine the amount of tax received by the government from the imposition of a tax on buyers of candy bars, we need to analyze the shift in demand from D1 to D2 as shown in the figure.
The amount of tax collected by the government can be calculated using the formula:
[ \text{Tax Revenue} = \text{Tax per unit} \times \text{Quantity sold} ]
Identify the tax per unit: This is the difference in price that buyers pay before and after the tax is imposed. If the price before the tax is ( P_1 ) and the price after the tax is ( P_2 ), then the tax per unit is ( P_2 - P_1 ).
Identify the quantity sold: This is the quantity of candy bars sold at the new price after the tax is imposed.
Calculate the tax revenue: Multiply the tax per unit by the quantity sold.
Since I do not have access to the figure you mentioned, I cannot provide the exact values for ( P_1 ), ( P_2 ), or the quantity sold. However, you can use the above steps to calculate the tax revenue based on the information in the figure.
If you can provide the specific prices and quantity from the figure, I can help you calculate the exact tax revenue. Otherwise, based on the options provided, you would need to determine which one matches your calculations.