A cash-starved town decides to impose a $6 excise tax on T-shirts sold. The following table shows the quantity demanded and the quantity supplied at various prices. Price per T- shirt $19 16 13 10 7 4 Quantity demanded 1.1 O 10 20 30 40 50 Quantity supplied 60 50 40 30 20 10 . How much tax revenue does the town generate from the tax?

Principles of Microeconomics
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ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
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8:15
OT
2. A cash-starved town decides to impose a $6
excise tax on T-shirts sold. The following table
shows the quantity demanded and the quantity
supplied at various prices.
Price per T-
shirt
к
$19
16
13
10
7
4
Quantity
demanded
10
20
30
40
50
+
Quantity
supplied
3
60
50
40
30
c. How much tax revenue does the town generate
from the tax?
20
10
Transcribed Image Text:8:15 OT 2. A cash-starved town decides to impose a $6 excise tax on T-shirts sold. The following table shows the quantity demanded and the quantity supplied at various prices. Price per T- shirt к $19 16 13 10 7 4 Quantity demanded 10 20 30 40 50 + Quantity supplied 3 60 50 40 30 c. How much tax revenue does the town generate from the tax? 20 10
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