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Question The government raises tax revenue of?

Question : Question The government raises tax revenue of?

Question

The government raises tax revenue of?

The supply of boats is perfectly elastic, the demand for luxury boats is unit elastic, and with no tax on luxury boats, the price is $3 million and 420 luxury boats a week are bought. Now luxury boats are taxed at 10 percent. After the tax is imposed, the buyer pays ____ for a luxury boat. A $0.30 million B. $3 million C. $420 million D. $3.30 million E. $3.15 million

 

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