Refer to Figure 4-8. How much revenue does the $40-per-ton tax generate for the government?

A) $600 million
B) $700 million
C) $2.4 billion
D) $2.8 billion

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount available, leading to equilibrium in the market.

Government Revenue

The income received by the government from taxes and non-tax sources like charges for services and customs duties.