Question

The government has levied a per unit tax of $72.00 on the suppliers of a good....

The government has levied a per unit tax of $72.00 on the suppliers of a good. The supply function of the good when there is no tax is given by QS = 5P - 500. The supply function with the tax is QS Tax=5P-860. The demand for this good is given by QD = 340 - P. Calculate the dollar amount of tax revenue from this good.

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